NEW PPP Forgiveness Applications Easier and More Forgiving
The Small Business Administration and the Department of the Treasury announced June 17 the release of two new applications for Paycheck Protection Program loan forgiveness.
The first is a new “borrower-friendly” application that includes changes made to the program through the PPP Flexibility Act of 2020. President Donald Trump signed the more flexible terms into law June 5.
This new forgiveness application asks that borrowers show at least 60 percent of their PPP funds were spent on payroll costs, rather than the originally required of 75 percent.
A second form called the “EZ version,” was designed to streamline the process for certain borrowers: self-employed with no employees; those who did not cut back on employees by more than 25 percent and did not reduce employee hours; and those who saw a drop in business but did not cut back on employee pay by more than 25 percent.
With these applications, businesses that received PPP loans before June 5 now have the option of calculating forgiveness based on the original eight-week period for spending the funds or the extended, 24-week period.