- Simpler loan forgiveness application created to provide flexibility to small businesses
- Revisions made as businesses begin to reach the 8-week period option for forgiveness
- SBA also created ‘EZ’ version aimed to help self-employed business owners, others
As many businesses begin to reach the end of the 8-week Forgiveness Period, the SBA and Treasury Department moved swiftly to simplify the application that each business would have to fill out for Loan Forgiveness. This comes as the latest modification in a slew made to the popular Paycheck Protection Program (PPP) this month, piggybacking off of the PPP Flexibility Act passed on June 3rd. The updated, streamlined Forgiveness application reflects the changes made by the PPP Flexibility Act, such as a choice to use a 24-week Forgiveness Period, relaxation of the 75%/25% payroll spending rule, expansion of Forgivable expenses, among others. The SBA and Treasury Department hope that the new application will give applicants a very straightforward process to follow, increasing the likelihood of forgiveness while reducing the need for rigorous review by lenders.
Perhaps most notable from the application modifications was the creation of an ‘EZ Version.’ The new application version was created to help PPP borrowers who are either:
- Have no employees;
- Did not reduce salaries or wages by more than 25%;
- Experienced reductions in business activity due to COVID-19
The EZ Version provides a number of benefits that differ from the Full Forgiveness application, such as:
- Fewer calculations
- Less documentation required to be submitted
- Clear cut instructions for smaller subset of borrowers
For access to the Full Forgiveness Application, EZ Forgiveness Applications as well as other current events or to speak with a member of our Coronavirus Response Team (CRT), visit our DSJCPA COVID-19 Information Center today!
Financial Services Partner
516-541-6549 | Email