4Thought Blog

4thought graphic - blog 2020

Simplified PPP Loan Forgiveness Applications Issued

Posted by Concannon Miller on Wed, Jun 24, 2020

Find me on:

PPP-loanSimplified PPP Loan Forgiveness Applications IssuedThe 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.

READ MORE: Congress Approves Significant Paycheck Protection Program Loan Flexibility

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.

Sign up for more Timely Tips for Businesses

Topics: 2020 Coronavirus

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

This communication is designed to provide accurate and authoritative information in regard to the subject matter covered at the time it was published. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

Subscribe for more Timely Tips for Businesses

Recent Posts