SBA Creates User-Friendly Paycheck Protection Program Application

June 29, 2020

As part of the Paycheck Protection Program Flexibility Act of 2020, the U.S. Small Business Administration has created a revised, user-frienussbadly Paycheck Protection Program (PPP) loan forgiveness application, requiring fewer calculations and less documentation.

Paycheck Protection Program Flexibility Act

  • Allows loan forgiveness beyond the current eight-week covered period to 24 weeks
  • Increases non-payroll expenses limit from 25 percent of loan to 40 percent
  • Increases minimum loan forgiveness terms from two years to five years
  • Ensures full access to payroll tax deferment for businesses that take the PPP loans
  • Extends the rehiring deadline to offset the effect of the unemployment insurance changes

In addition, the SBA also published a new "EZ" version of the forgiveness application for borrowers who:

  • are self-employed and have no employees; or
  • did not reduce the salaries or wages of their employees by more than 25 percent, and did not reduce the number of hours of their employees; or
  • experienced reductions in business activity as a result or wages of their employees by more than 25 percent

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 eight-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.

EZ Forgiveness Application

Full Forgiveness Application

The U.S. Small Business Administration is accepting Paycheck Protection Program applications through August 8. This program ensures that eligible small businesses can continue to pay employees and cover certain costs during the unprecedented COVID-19 pandemic. To date, more than 16,000 West Virginia small businesses will benefit from the PPP.


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