Treasury/SBA Release Revised and “EZ” PPP Loan Forgiveness Applications
June 17, 2020
Treasury and the SBA have released this morning two “borrower-friendly” updates to the PPP Loan Forgiveness Application to reflect changes made to the program by the PPP Flexibility Act. The link for the revised standard version and instructions are below.
In additional, a new tree=page “EZ” version has been released for borrowers who (i) are self-employed, or (ii) did not reduce wages by more than 25 percent and did not reduce the number of hours of their employees, or (iii) experienced reductions in business activities as a result of health directives related to COVID-19 and did not reduce wages by more than 25 percent.
CSI will continue to monitor and update all clients with any information.
Full press release from the Treasury:
PRESS RELEASES
SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program
June 17, 2020
Washington—Today, the U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, 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%, 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%.
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.
Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) 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.
The EZ application link:
https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf
Revised standard application link:
https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
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