The U.S. Small Business Administration (SBA), in consultation with the Treasury, released a revised loan forgiveness application for the Paycheck Protection Program (PPP) on June 17, 2020, as well as an EZ application option. The updated applications reflect the changes made to the Paycheck Protection Flexibility Act, which became law earlier this month.
The revised application and instructions include several items of interest, including:
- Health insurance costs for S corporation owners cannot be included when calculating payroll costs; however, retirement costs are
- Borrowers that received loans prior to June 5 can select either the new 24-week covered period or the stay with the original 8-week covered
The EZ application requires fewer calculations than the revised application and can be used by borrowers that:
- Are self-employed and have no employees;
- Did not reduce salaries or wages of their employees by more than 25% and did not reduce the number of 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%.
If you have questions regarding this topic, or would like to discuss the applications in more detail, please reach out to us at (469) 467-4660, or email@example.com.