The SBA just released a revised PPP Loan Forgiveness Application and a new EZ Loan Forgiveness Application for borrowers. The revised form includes the changes from the Paycheck Protection Program Flexibility Act of 2020 that was signed into law on June 5th. The new EZ form has fewer calculation requirements and less documentation. The EZ form only applies to borrowers that:
- Are self-employed and have no employees; OR
- 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%.
Make sure to work with your accounting professional if you have received a PPP loan to ensure your calculations are correct per the PPP use guidelines and to help ensure “coverage period” and other compliance for full forgiveness.
Access the most updated information on COVID-19 business and tax relief initiatives on our COVID-19 Resources page.