Forgiveness is Such a Delicate Thing (PPP that is…)
For Buyers For SellersPosted by Ron Buck on
Yesterday, Treasury posted two new forgiveness applications: a revised version of the longer form and a new EZ form. Linked below are both the applications and the instructions (which are pretty helpful in navigating the ins and outs of the program). The new applications take into account the provisions of the PPP Flexibility act announced 6/5 (highlighted here).
As summarized by my colleague at Diamond Financial, Steve Mariani:
The new EZ application applies to borrowers who:
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Are self-employed and have no employees; OR
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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
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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%.
The new EZ application is less intensive than the original application, requiring fewer calculations and documentation. The new and revised applications are designed to make the forgiveness process more efficient for both lenders and borrowers.
Another posting that you might find useful is from Mowery & Schoenfeld, CPAs: no-ppp-forgivness-cliff-and-other-new-guidance
This was posted yesterday, ahead of the revised applications, you can see how rapidly this stuff changes. The applications answered the post’s question #1 about the forgiveness cap on employees making over $100,000 relative to the 8-week window versus the 24-week window.
PPP-Loan-Forgiveness-Application-Form-EZ-Instructions
PPP-Loan-Forgiveness-Application-Instructions_1_0 Revised June 16