On Tuesday, the Small Business Administration (SBA) announced a new "EZ" version of the PPP loan forgiveness application that's more borrower-friendly. The EZ application requires fewer calculations and less documentation for eligible borrowers. It was implemented as part of the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.
The "EZ" application, like the tax form it's named after, is not for everyone. Here's a rundown of EZ's eligibility requirements:
- Borrowers who are self-employed and have no employees.
- Borrowers who have employees, but did not reduce the salaries or wages of their employees by more than 25 percent, and did not reduce the number or hours of their employees.
- Borrowers who 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 percent.
More details of these provisions are available on the form itself, which can be found on the Small Business Administration's website. Businesses that do not qualify for the new "EZ" application can still apply for loan forgiveness using the full forgiveness application.