SBA Issues New PPP Loan Forgiveness Forms

Dear WANADA Members,

The Small Business Administration, in the wake of the passage of the Paycheck Protection Flexibility Act (PPFA) , has continued to update their documents and guidance related to the Paycheck Protection Program. 

Most importantly, earlier today the SBA released new PPP loan forgiveness application forms, including an EZ Forgiveness Application and corresponding instructions for the application.

The SBA also issued a revised version of the full loan forgiveness application, which is five pages long. The revised full-length forgiveness application does not include the full instructions that the original application did, but the SBA did revise those instructions, and you can view them at this separate link. 

As the EZ instructions explain, PPP borrowers who are eligible to file with the EZ application must be able to demonstrate that they  did not reduce the salaries or hourly wages of any employees by more than 25 percent during the loan period. Eligible borrowers using the EZ form must also meet one of the following two qualifications:
  • The borrower maintained their pre-pandemic employment levels (not including offers of re-employment to furloughed employees that were rejected by the employee).
  • The borrower's business was unable to operate at the same level of pre-pandemic activity due to state or local health and safety mandates, or because of efforts to fully comply with social distancing guidelines published by OSHA, the CDC, and HHS.
Please note that the also  SBA issued a revision to two previously-published interim final rules , to align them with the changes mandated by the PPFA; this supplements the additional rule revision published yesterday. 

Included in those revisions is a clarification that PPP borrowers have the ability to self-evaluate their eligibility for the employee and salary-level retention forgiveness benefits, effective at the time they file their application. If you wish to apply for a PPP loan, you still have until June 30 to do so; you can access the loan application at this link, and can click here to find an SBA 7(a) lender.

You may view all of the documents referenced above on the SBA website at this link.
We also encourage you to review the  CARES Act guidance  that our friends at the National Automobile Dealers Association have produced, along with their PPP loan forgiveness information resource . 

Please let me or Joe Koch ( jk@wanada.org) know if you have any questions. We will be sure to continue providing you with the latest details on all federal government resources available to businesses as they are updated.

With that in mind, please be aware that the SBA has begun accepting new applications for their  Economic Injury Disaster Loan advance program, following a lengthy hiatus. The Federal Reserve has also begun soliciting lending partners for its Main Street Business Lending Program, and we will be updating you with more information for borrowers when the program begins accepting applications from small and medium-sized businesses.

Sincerely,
  
John O'Donnell
WANADA President and CEO