The U.S. Small Business Administration (SBA) has issued a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application. The new forgiveness form was part of the PPP Flexibility Act of 2020, signed into law June 5, 2020 and is designed to increase processing efficiency to make it easier for businesses to realize full forgiveness of their PPP loan.
In addition to revising the full standard forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers who:
- 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 of 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. 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.