On Wednesday, June 17, the Small Business Administration (SBA), in consultation with the Treasury, announced a revised PPP loan forgiveness application form and instructions. The revised form incorporates changes that resulted from the Paycheck Protection Flexibility Act, legislation designed to loosen the restrictions for PPP loan forgiveness and signed by President Trump on June 5.

In addition to revising the previous forgiveness application, the SBA also debuted a new "EZ" version of the forgiveness application that requires fewer calculations and less documentation. The EZ version is available for borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25 percent, and did not reduce the number of 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 percent.

The revised full application form has been cut to five pages from the original 11, and the new EZ application form is just three pages.

The full application as well as the EZ version both give borrowers the option of using the original 8-week covered period (if the loan was made before June 5, 2020) or an extended 24-week covered period.

A joint press release issued today by the Treasury and SBA noted that the changes to the loan forgiveness application forms were intended to create a more efficient process and make it easier for borrowers to realize full forgiveness of their PPP loans. This will no doubt be very welcome news to businesses that borrowed PPP funds.

If you have any questions about these or any other matters, please contact your Kreischer Miller relationship professional or any member of our team. We also continue to update our COVID-19 Resource Center, which you can access here.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.