In the wake of the passage of the Paycheck Protection Flexibility Act (PPFA), the
Small Business Administration released new PPP loan forgiveness application forms, including an EZ Forgiveness Application and corresponding instructions for the application.
The SBA also issued a revised version of the full loan forgiveness application, which is five pages long. The revised full-length forgiveness application does not include the full instructions that the original application did, but the SBA did revise those instructions, and you can view them at this separate link.
As the EZ instructions explain, PPP borrowers who are eligible to file with the EZ application must be able to demonstrate that they did not reduce the salaries or hourly wages of any employees by more than 25 percent during the loan period. Eligible borrowers using the EZ form must also meet one of the following two qualifications:
- The borrower maintained their pre-pandemic employment levels (not including offers of re-employment to furloughed employees that were rejected by the employee).
- The borrower’s business was unable to operate at the same level of pre-pandemic activity due to state or local health and safety mandates, or because of efforts to fully comply with social distancing guidelines published by OSHA, the CDC, and HHS.
Please note that the also SBA has also revised two previously-published interim final rules , to align them with the changes mandated by the PPFA; this supplements an additional rule revision published early last week.
Included in those revisions is a clarification that PPP borrowers have the ability to self-evaluate their eligibility for the employee and salary-level retention forgiveness benefits, effective at the time they file their application. If you wish to apply for a PPP loan, you still have until June 30 to do so; you can access the loan application at this link, and can click here to find an SBA 7(a) lender.
You may view all of the documents referenced above on the SBA website at this link.
We also encourage you to review the CARES Act guidance that our friends at the National Automobile Dealers Association have produced, along with their PPP loan forgiveness information resource.Download Bulletin PDF