WASHINGTON—The Small Business Administration (SBA) and Treasury have released a revised, “borrower-friendly” paycheck protection program (PPP) loan forgiveness application implementing changes made by the recently enacted Paycheck Protection Program Flexibility Act (H.R. 7010).
In addition, the agencies published a new EZ version of the forgiveness application for borrowers who:
- 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 the pandemic, and did not reduce the salaries or wages of their employees by more than 25%
Fewer Calculations
As the name implies, the EZ application requires fewer calculations and less documentation for eligible borrowers. Both applications allow borrowers to use the original eight-week covered period – if their loan was made before June 5 – or an extended 24-week covered period. The changes are designed to result in a more efficient process and make it easier for business to experience full forgiveness, NAFCU said.
The new forms come as the House Small Business Committee this week held a hearing with PPP borrowers and lenders to discuss challenges of the program, including the forgiveness application. During the hearing witnesses also expressed concerns on the lack of clarity and guidance, and confusion regarding loan implementation.