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Loan Forgiveness Application Revised
Chris Pierson • Jun 22, 2020
Revised Loan Forgiveness Application
Dear Friend,
The Small Business Administration (SBA) has released a new forgiveness application and instructions to reflect changes to the Paycheck Protection Program that went into effect June 5. I want to share these new materials with you and remind you that my office remains a resource to your business through this challenging time.
The revised forgiveness application reflects the changes made earlier this month in the Paycheck Protection Program Flexibility Act that modifies the program to better suit businesses’ evolving needs:
• Borrowers now have 24 weeks to meet forgiveness requirements, but if your business’ loan was made before June 5, you may choose to maintain the original 8-week covered period.• Borrowers are now required to spend 60% of their loan amount on payroll to qualify for forgiveness.• Loans made after June 5 will mature after 5 years if they are not forgiven after the covered period. Loans made before June 5 will still mature at 2 years if they are not forgiven after the covered period.• Exceptions to forgiveness requirements for certain reductions in employees, hours, or wages, and for businesses that were unable to operate before the end of their covered period to comply with OSHA, CDC, or HHS requirements.
The new EZ Loan Forgiveness Application
The new EZ Loan Forgiveness Application is designed to reduce the number of calculations and documents for certain borrowers. You may use the EZ Application if:
• You are self-employed and have no employees; or• Your business did not reduce wages more than 25% and did not reduce the number of employees or their hours; or• Your business experienced reductions in business activity due to COVID-19 health directives and did not reduce employees’ wages or salaries more than 25%.
These modifications are designed to make the Paycheck Protection Program a more effective relief tool for small business like yours. All loans remain forgivable if conditions are met within the covered period. For specific questions about your PPP loan, contact your lender. My office is also a resource for you and if we can be of assistance to you, please call my office in Pottsville at (570) 871-6370.
Sincerely,
Dan Meuser
Member of Congress
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