SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

 

SBA and Treasury have released New and Revised Forgiveness Applications for PPP. Lenders are encouraged to review them carefully and then pass the information on to your borrowers.

PLEASE NOTE: There are two versions of the forgiveness application. A new “EZ” version and then a revised version of the previous application. Borrower that meet ONE of the following criteria should use the EZ Application:

  • Are self-employed and have no employees; OR
  • 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%.

All other borrowers should us the revised application. Applications and instructions for completing them can be found here at https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses. Direct links to the fillable pdf versions are here:

PLEASE NOTE: SBA and Treasury have NOT YET issued guidelines on the process for lenders to submit loan forgiveness application information to SBA. We will release that information as soon as it is available.  As a reminder, borrowers currently have ten months from the end of their covered period to submit their forgiveness application to their lender.

 

NEWS RELEASE

PRESS OFFICE

Release Date: June 17, 2020              Contact: Press_Office@sba.gov, (202) 205-7036

Release Number: 20-48                     Follow us on Twitter, Facebook, Blogs & Instagram

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

 

WASHINGTON—Today, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.  In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

 

  • Are self-employed and have no employees; OR
  • 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%.

 

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 8-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. 

 

Click here to view the EZ Forgiveness Application.

Click here to view the Full Forgiveness Application.

 

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov

 

 

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