Tuesday, December 1, 2020

SBA, Treasury release simpler loan forgiveness application for Paycheck Protection Program

The Small Business Administration, along with the Treasury, released early this morning a new Paycheck Protection Program forgiveness application, which is more streamlined and easier for applicants to navigate.

The new form, which is being referred to as an EZ Loan Forgiveness Application, can be downloaded by clicking here.

The full Loan Forgiveness Application Form can be downloaded here.

This new EZ form applies to 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 COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.