The Small Business Administration in consultation with the U.S. Treasury has published a new EZ application for loan forgiveness along with instructions.
The EZ two page PPP Loan Forgiveness Application requires fewer calculations and less documentation than the full application, but there are requirements that the borrower must meet to be able to use this new version. To qualify for the EZ application, the borrower must meet one of the following conditions:
1) The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application.
2) A) The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered or alternate covered period.
AND
B) The borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the covered period.
3) A) The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered or alternate covered period.
AND
B) The borrower was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 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.
If you can check at least one of the three items above, complete the SBA Form 3508EZ in accordance with the instructions provided by the SBA. You can find the application here. If you have any further questions, please reach out.
