The Small Business Administration has introduced an “EZ Forgiveness Application” for Paycheck Protection Program loans for small businesses negatively impacted by the COVID-19 pandemic. The new forms require fewer calculations and less documentation to apply for the PPP loan forgiveness, according to the World Floor Covering Association (WFCA).
The Small Business Administration has introduced an “EZ Forgiveness Application” for Paycheck Protection Program loans for small businesses negatively impacted by the COVID-19 pandemic. The new forms require fewer calculations and less documentation to apply for the PPP loan forgiveness, according to the World Floor Covering Association (WFCA).
The new form is limited to those who are self-employed and have no employees, or loan recipients who did not reduce the salaries or wages of employees by more than 25% and did not reduce the number or hours of employees.
The SBA also introduced new regulation limits for the amount of the loan that can go toward “owner-employees, a self-employed individual, or general partners,” according to WFCA. In this case, the new maximum amount is $15,385 if the loan recipient chooses the eight-week covered period, or $20,833 if the recipient chooses the 24-week covered period for the loan.
"In addition, the costs of covered benefits for owners (health care expenses and retirement contributions), and state taxes imposed on employee payroll paid by the employer are not included in the payroll costs for owners," according to WFCA.
WFCA stated that the definition of the “owner-employee” is unclear in the regulation and that it is working to get clarification.
The EZ Forgiveness Application can be found here.
