SBA Releases EZ PPP Loan Forgiveness Application
The SBA released the following revised “borrower-friendly” PPP loan forgiveness applications:
1. PPP Loan Forgiveness Application – This application incorporates the changes as outlined in the Paycheck Protection Flexibility Act and also reduces the original 11 page application to 5 pages.
2. PPP Loan Forgiveness EZ Application – The SBA also released a simplified 3 page application that applies to certain borrowers. Borrowers can use the EZ form if one of the following conditions applies:
a. The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP application and did not include any employee salaries in the computation of average monthly payroll in the borrower application form.
b. The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered period or the alternative payroll covered period compared to the period between January 1, 2020 and March 31, 2020 AND the borrower did not reduce the number of employees or average paid hours of employees between January 1, 2020 and the end of the covered period.
c. The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered period or alternative payroll covered period compared to the period of January 1, 2020 and March 31, 2020 AND the borrower was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or OSHA, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.
If you have any questions, please reach out to your Lutz, Selig & Zeronda, L.L.P. advisor.