Paycheck Protection Program: New guidance and forgiveness forms

The Small Business Administration released a host of new guidance yesterday. It also announced two new applications for “EZ Forgiveness” and full forgiveness.

If you want to know more about the forgiveness process on the back end, the SBA and Treasury published new, revised, more-borrower-friendly PPP forms:

In addition to revising the full forgiveness application, SBA also published a new EZ version that applies to some borrowers.

For more information on these forms, you can read the full news release.

Yesterday, the SBA announced that borrowers still can apply for an SBA PPP loan. The program has more than $100 billion in funds remaining. The deadline to submit loan applications to the SBA is June 30. Sole proprietors, self-employed individuals, and other business owners are eligible to apply.

Also, SBA has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19. Important points to consider are: 

  • EIDL assistance can be used to cover payroll and inventory, pay debt or other expenses. The interest rate is 3.75 percent for small businesses, 2.75 percent for non-profits and the term is for up to 30 years.
  • The EIDL Advance can provide up to $10,000 ($1,000 per employee) in emergency funds to businesses that do not have to be repaid. 
  • SBA’s EIDL and EIDL Advance are just one piece of the expanded focus of the federal government’s coordinated response.
  • Forgiveness is automatic on an EIDL Advance and if a borrower got both an EIDL Advance and PPP loan, the EIDL Advance is deducted from the forgivable amount of a PPP loan.

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