The SBA and the U.S. Treasury Department issued a revised “borrower-friendly” Paycheck Protection Program loan forgiveness application and a new “EZ” version of the forgiveness application on Wednesday. The changes were made in an effort to make PPP loan forgiveness a more efficient process and easier for businesses to realize full forgiveness of their loans, the SBA said in a press release on Wednesday.
According to the SBA, the new EZ version of the forgiveness application applies to borrowers who:
- are self-employed and have no employees;
- 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%.
Both applications provide 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, according to the SBA.