More than $100 billion in federal Paycheck Protection Program (PPP) loan funding through the United States Small Business Administration (SBA) remains available to eligible small businesses on applications submitted by the June 30 deadline.
In consultation with the U.S. Department of the Treasury, the SBA also has posted a revised, borrower-friendly PPP loan forgiveness application implementing the PPP Flexibility Act of 2020, which was signed into law by President Donald J. Trump on June 5. Click HERE to access instructions for borrowers seeking to apply for loan forgiveness.
In addition to revising the full forgiveness application, the SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25 percent, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25 percent.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. Click HERE to access instructions for EZ borrowers seeking to apply for loan forgiveness.
Both applications give borrowers the option of using the original eight-week covered period (if their loan was made before June 5) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.