Update June 16, 2020: The Small Business Administration (SBA), in conjunction with the U.S. Treasury, released a revised application and instructions for PPP loan forgiveness because of changes made to the program by the PPP Flexibility Act.
In addition to revising the standard application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees, OR
- 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%.
PPP Loan Forgiveness Applications
- Loan Forgiveness Application Form EZ (SBA/U.S. Treasury) 6/16/2020
- Loan Forgiveness Application Form EZ Instructions (SBA/U.S. Treasury)
- Loan Forgiveness Application (SBA/U.S. Treasury) Revised 6/16/2020
- Loan Forgiveness Application Instructions (SBA/U.S. Treasury) Revised 6/16/2020
The forms and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by Dec. 31, 2020
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
More on PPP loan forgiveness and COVID-19
- PPP Flexibility Act Extends Forgiveness, Eases Requirements for Employers
- SBA Issues PPP Loan Forgiveness Guidance
- How to Rehire Employees Laid Off Due to the Coronavirus Pandemic
- CARES Act, PPP and SBA Resources
HR Symphony PPP Loan Forgiveness Worksheet
To make the forgiveness process as simple as possible, clients of simplicityHR can access a PPP Loan Forgiveness Worksheet through HR Symphony. The worksheet helps gather required information and assists in determining the potential forgiveness amount for your PPP loan.
Login to HR Symphony to download the PPP Loan Forgiveness Worksheet. Detailed instructions are available in the HR Symphony Resource Library.
This material is provided for informational purposes only. It is not intended to constitute legal advice, and reader should consult with their advisor or counsel before taking any actions based on the information contained within this material.