Paycheck Protection Program
Loan Forgiveness Application Released
On June 17, 2020, the U.S. Small Business Administration (SBA), in conjunction with the Department of the Treasury (Treasury), released two new Paycheck Protection Program (PPP or Program) loan forgiveness applications incorporating the new guidance that was approved as part of the Paycheck Protection Program Flexibility Act of 2020 (PPP Flexibility Act or Bill). Additionally, the SBA and Treasury introduced a new simplified EZ application on June 17. The new applications, related instructions, and other guidance issued by the SBA and Treasury can be viewed
here
.
What is the new simplified EZ PPP loan forgiveness application?
The newly released EZ PPP loan forgiveness application offers a simplified application for borrowers that qualify. A borrower has to meet at least one of the following three requirements to use the EZ loan forgiveness application:
- The borrower is a self-employed individual, independent contractor, or sole-proprietor who had no employees at the time of the application.
- The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the Covered Period or Alternative Covered Period as compared to the period between January 1, 2020, and March 31, 2020, AND the borrower did not reduce the number of employees or the average hours paid of employees between January 1, 2020, and the end of the Covered Period (certain other exemptions may apply - see instructions).
- The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the Covered Period or Alternative Covered Period as compared to the period between January 1, 2020, and March 31, 2020, AND the borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020, and December 31, 2020, by various Federal Agencies or other COVID-19 related safety measures.
