The PPP loan forgiveness application has been simplified and an easier version for certain businesses has been issued.
The U.S. Small Business Administration announced this week it has simplified the PPP loan forgiveness application and created a second application called the EZ application. The EZ application requires fewer calculations and less documentation for eligible borrowers.
Businesses can use the EZ application if they:
- 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%; or
- Are self-employed and have no employees.
The SBA also has made improvements to the regular application, cutting it from 11 to 5 pages (the EZ application is 3 pages). The changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan, the SBA said.
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.
Further details on the requirements to use the EZ application can be found on the new form, which can be accessed here.
The updated regular loan forgiveness application can be found here.