SBA simplifies small business applications for PPP loan forgiveness
The U.S. Small Business Administration has announced two new forms for borrowers to seek forgiveness of their Paycheck Protection Program loans. Credit: James T. Madore
The application to have a Paycheck Protection Program loan forgiven has been cut in half, officials said.
The full forgiveness application is now 5 pages instead of 11, the U.S. Small Business Administration announced this week.
The form may be found at nwsdy.li/ezforgive.
There also is a 3-page “EZ application” for borrowers who are self-employed or did not reduce the salaries of employees by more than 25%.
“The EZ application requires fewer calculations and less documentation, which makes the process much less intimidating,” said SBA regional administrator Steve Bulger. “I’m sure this will go a long way toward improving access and helping us distribute the remaining PPP appropriations to support small business owners and their employees.”
On Long Island, small-business owners have complained about the complexity of seeking forgiveness for all or part of their PPP loans, in particular frequent changes in regulations by SBA and the Department of Treasury.
Applications should be submitted to the lender, not SBA, once the borrower has exhausted the PPP funds, in either eight weeks or 24 weeks.
SBA will audit all borrowers with loans of more than $2 million, Treasury Secretary Steven Mnuchin said in April, adding spot checks will be conducted of smaller loans.
PPP loans are for up to $10 million per applicant and generally go to businesses with 500 or fewer employees. The interest rate is 1% with a five-year term, and the entire amount is forgivable in some instances. Newsday has secured a $10 million PPP loan.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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