In response to intense advocacy from the OBL and others, the Small Business Administration this morning published a much less onerous three-page “EZ” Paycheck Protection Program loan forgiveness application
"This huge win for the industry shows the power of a trade association," commented OBL VP of External Relations Evan Kleymeyer. "We led a group of other Ohio trade groups representing the full breadth of borrowers and lenders participating in the PPP to push for a streamlined forgiveness form. This combined group was able to gain bipartisan support from the Ohio Congressional Delegation and others, making it impossible for SBA and Treasury to ignore."
The new, streamlined form will apply to all sole proprietors, independent contractors and self-employed individuals with no employees. It will also apply to businesses that did not reduce salary or hourly wages for any employee by more than 25%, and did not reduce the number or hours worked (excluding employees who refused offers to return to work). Companies that were unable to operate "due to compliance with requirements established or guidance issued 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, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement" will also be able to use the new form.
The EZ application requires fewer calculations and less documentation for eligible borrowers. SBA also published a new version of the regular Form 3508 incorporating recent changes in the PPP Flexibility Act. Both applications give borrowers the option of using the original eight week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.
"These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan," the SBA said in a statement.
In related news, the SBA today also reopened the Economic Injury Disaster Loan and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19 today.