The U.S. Small Business Administration (SBA) has issued a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020.
Meanwhile, the deadline for applying for the Paycheck Protection Program is the end of the month. Small businesses must apply with a lender to be eligible for funding by June 30. SBA has about $100 billion available for relief.
Through June 6, 131,887 Ohio businesses have been approved for $18.1 billion in loans, placing Ohio in the top 10 in the country for both the number loans and funding amount.
In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that meet at least one of these conditions:
- Are self-employed and have no employees.
- Did not reduce the salaries or wages of their employees by more than 25 percent and did not reduce the number or hours of their employees.
- 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 percent.
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.
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. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.