The U.S. Small Business Administration (SBA) and the Department of the Treasury have introduced a new EZ application for Paycheck Protection Program (PPP) forgiveness. The revised and condensed application features a decrease in the amount of documentation and calculations a qualified borrower is required to conduct. Qualified borrowers are those who: are self-employed and have no employees; did not reduce salaries or wages of their employees by more than 25 percent and did not reduce the number of hours for their employees; or who experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages for their employees by more than 25 percent. This new EZ application is pared down to just three pages, but both versions will offer the option of the original eight-week coverage period—if the loan was taken before June 5—or an extended 24-week covered period. According to both the SBA and Treasury, these changes should result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan. A link to the new EZ form can be found below. This is to be filled out and presented to the lender who is servicing the loan. Paper forms can be filled out and presented or the application can be completed online through the lender. The deadline for forgiveness application submission is Oct. 31, 2020.
________________________________________
Link to PPP Forgiveness Application EZ form: https://www.sba.gov/sites/default/files/2020-06/PPP%20Forgiveness%20Application%203508EZ%20%28%20Revised%2006.16.2020%29.pdf