New Paycheck Protection Program Loan Applications Released
On Wednesday, June 17, 2020, the Small Business Administration (SBA), in consultation with Treasury, released a revised loan forgiveness application for the Paycheck Protection Program (PPP). The SBA also unveiled a new EZ application for the forgiveness of PPP loans. The Journal of Accountancy recently published an article highlighting the revised PPP Loan Forgiveness Application Highlights and New EZ Application Details.
The revised PPP Loan Forgiveness Application and instructions include several notable items. Among them are:
- Health insurance costs for S corporation owners cannot be included when calculating payroll costs; however, retirement costs for S corporation owners are eligible costs.
- Safe harbors for excluding salary and hourly wage reductions and reductions in the number of employees (full-time equivalents) from loan forgiveness reductions can be applied as of the date the loan forgiveness application is submitted. Borrowers don’t have to wait until December 31 to apply for forgiveness to use the safe harbors.
- Borrowers that received loans before June 5 can choose between using the original eight-week covered period or the new 24-week covered period.
New EZ Application Details
The EZ PPP Loan Forgiveness Application requires fewer calculations and less documentation than the full application. The EZ application can be used by borrowers that:
- 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%.
To learn more, you can read the full article on the Journal of Accountancy’s website: https://www.journalofaccountancy.com/news/2020/jun/ppp-loan-forgiveness-applications.html
You may also download the applications:
- Revised PPP Loan Forgiveness Application and instructions; and
- EZ PPP Loan Forgiveness Application and instructions
If you have any questions, please contact your BGM professional or Cory Parnell at email@example.com. We are proud to advise you and offer you and your business the support it needs. Providing our clients with the highest level of service remains our top priority.
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