Updated PPP Loan Forgiveness Application and EZ Loan Forgiveness Application Now Available

Nelson Mullins Riley & Scarborough LLP

The SBA has released an updated loan forgiveness application and instructions for the Paycheck Protection Program (“PPP”) to account for certain changes made in the Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”) signed into law by President Trump on June 5, 2020. As discussed in a previous client alert, the PPP Flexibility Act, among other things, increased the loan forgiveness covered period from 8 weeks to 24 weeks and decreased the forgivable amount needed to be spent on payroll expenses from 75% to 60%. See our prior client alerts for more general information about the PPP and PPP loan forgiveness

The SBA also released an EZ loan forgiveness application and instructions, which requires fewer calculations and less documentation than previously required. The EZ loan forgiveness application is available for a PPP borrower who meets any one of the following three criteria:

  • Is a self-employed individual, independent contractor or sole proprietor, with no employees;
  • Did not reduce salary or wages for any employee by more than 25% during the covered period and did not reduce the number or hours of its employees (ignoring both (i) reductions from an inability to rehire employees if unable to hire similarly qualified employees and (ii) reductions in an employee’s hours that the borrower offered to restore and the employee refused); or
  • Did not reduce salary or wages for any employee by more than 25% during the covered period and was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to complying with certain COVID-19-related work or customer safety requirements or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration (including the maintenance of sanitation standards or social distancing). 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Nelson Mullins Riley & Scarborough LLP | Attorney Advertising

Written by:

Nelson Mullins Riley & Scarborough LLP
Contact
more
less

Nelson Mullins Riley & Scarborough LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.