Early on June 17, SBA released a revised PPP loan forgiveness application to implement changes made by the PPP Flexibility Act. SBA has also released a new EZ version of the forgiveness application that 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%.
The new 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.
Both applications give borrowers the option of using the original eight-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.
FIPCO and WBA will release an updated FIPCO PPP Forgiveness Calculator soon to reflect these revisions. The WBA PPP FAQs will be updated yet today to incorporate these most recent changes.
By, Amber Seitz