The Small Business Administration (SBA) has just released a streamlined form for applying for forgiveness with your Paycheck Protection Program (PPP) lender. You are eligible to fill out the EZ Forgiveness Application if you meet one of the following requirements:
• You are self-employed and have no employees;
• You did not reduce the salaries or wages of your employees by more than 25%, and did not reduce the number or hours of your employees;
• You experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of your employees by more than 25%.
Note: Businesses that don’t meet one of these requirements will still need to complete the Full Forgiveness Application.
The SBA has also updated its PPP guidance to reflect changes enacted by the Paycheck Protection Program Flexibility Act. Businesses now can use PPP funds over a 24-week period, and the covered period for the loan was extended until Dec. 31, 2020. The updated guidance can be found here.
