New EZ PPP Loan Application Released by SBA
Jun 22, 2020
The U.S. Small Business Administration (SBA) released a new EZ application for forgiveness of PPP loans.
The EZ application reflects changes to the PPP made by the Paycheck Protection Flexibility Act of 2020, P.L. 116-142, which became law June 5, 2020.
You can download the application and instructions.
The Paycheck Protection Flexibility Act makes it easier for PPP borrowers to qualify for full loan forgiveness in the following ways:
- The “covered period” for loan forgiveness was expanded from 8 weeks to 24 weeks
- The proportion of proceeds that must be spent on payroll costs was reduced from 75% to 60%
- A safe harbor was created for businesses that have been unable to return to the level of business activity they had before the COVID-19 pandemic due to compliance with health and safety guidelines for slowing the spread of the virus
What is different about the EZ PPP Loan Forgiveness Application? It requires fewer calculations and less documentation than the regular application.
Who can use the EZ PPP Loan Forgiveness Application? Borrowers who meet the following criteria:
- Are self-employed and have no employees
- 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%.
More information is available on the SBA website.