The U.S. Small Business Administration (in consultation with the Treasury Department) today released two Paycheck Protection Program (PPP) loan-forgiveness application forms—a revised PPP loan-forgiveness application form and an “EZ” application form.
The Paycheck Protection Program (PPP) was enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136), to provide lending to both small and large businesses.
The “PPP Flexibility Act of 2020” (signed into law on June 5, 2020) made several important changes to the PPP—for instance, it extended the time for the expenditure of funds and eased the requirement that 75% of funds be used for wages. A tax provision also amended the CARES Act to allow the deferral of payroll taxes without losing forgiveness of indebtedness under the PPP.
According to today’s SBA release (20-48), the new EZ version of the PPP loan-forgiveness application is available for borrowers that:
Both applications are intended to provide an option of using the original eight-week covered period (if the loan was made before June 5, 2020) or an extended 24-week covered period.
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