Washington - Yesterday, the U.S. Small Business Administration (SBA), 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 who:
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.
In addition to the article above, below are some additional comments and resources regarding PPP Loan Forgiveness:
We also wanted to caution that the 25% reduction in wages does apply to both the 8 and 24 week periods. Any reduction in salaries or hourly wages over the covered period by more than 25% compared to the average pay in Quarter 1 will result in a dollar-for-dollar reduction of forgiveness.
If you have any questions, please contact your local Kemper office.