The Small Business Administration (SBA) and the Department of Treasury released an updated Paycheck Protection Program (PPP) loan forgiveness application. This new application has been updated to incorporate modifications from the recently implemented information in the PPP Flexibility Act of 2020.
The most notable updates include:
- The addition of the 24-week covered period. For borrowers who received its PPP loan before June 5, 2020, they may still elect to use an eight-week period.
- The total amount of cash compensation eligible for forgiveness per employee still may not exceed an annual salary of $100,000, as prorated for the Covered Period. For an 8-week Covered Period, that total is $15,385. For a 24-week Covered Period, that total is $46,154.
- The owner compensation limit has been adjusted to take advantage of the new 24-week covered period. For borrowers using a 24-week covered period, this amount is capped at $20,833 and for borrowers using an 8-week covered period, this amount is capped at $15,385.
In addition to revising the full forgiveness application, the SBA also published a new EZ version of the forgiveness application. This application applies to borrowers that:
- Are self-employed and have no employees; OR
- 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
- 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%.
At Windham Brannon, we are dedicated to keeping you up to date with the latest Covid-19 activity in our Covid-19 Resource Center. Our team is working around the clock to ensure we stay up to date on the latest guidance and information to assist you and your business during this unique time. For further assistance, please do not hesitate to reach out to your Windham Brannon advisor or email us at firstname.lastname@example.org.