The U.S. Small Business Administration released Wednesday a revised loan forgiveness application for the Paycheck Protection Program on June 17.
The SBA also unveiled a new EZ application for forgiveness of PPP loans.
According to the Pikes Peak Small Business Development Center, which is helping small businesses through the loan application process, the PPP loan program has undergone some revisions, including these:
- Health insurance costs for S corporation owners cannot be included when calculating payroll costs; however, retirement costs for S corporation owners are eligible costs.
- Safe harbors for excluding salary and hourly wage reductions and reductions in the number of employees (full-time equivalents) from loan forgiveness reductions can be applied as of the date the loan forgiveness application is submitted. Borrowers don’t have to wait until Dec. 31 to apply for forgiveness to use the safe harbors.
- Borrowers that received loans before June 5 can choose between using the original eight-week covered period or the new 24-week covered period.
The EZ PPP loan forgiveness application requires fewer calculations and less documentation than the full application. The EZ application can be used by borrowers who:
- Are self-employed and have no employees;
- 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; 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 percent.
Additional application highlights are here.
The SBDC has scheduled a series of resiliency workshops to help small businesses recover and strengthen for the future. They include:
- June 19: Friday Lunch Series: Recovery & Resilience – Contact Tracing & Data Collection Practices (Pikes Peak SBDC)
- June 23: Resiliency Series: Creating Your Marketing Message (Aurora-South Metro SBDC)
- June 30: Resiliency Series: Marketing Tactics & Tools (Aurora-South Metro SBDC)
Businesses can sign up for the SBDC’s resiliency series at pikespeaksbdc.org/prepare.
The SBA has also reopened the Economic Injury Disaster Loan program to eligible businesses and nonprofits experiencing economic impacts due to the COVID-19 pandemic.
The program provides low-interest loans to help overcome the temporary loss of revenue. As part of EIDL, businesses and nonprofits can access an advance up to $10,000 within three days of their application being accepted.
The amount of the advance, which acts as a grant and does not need to be paid back, will be determined by the number of employees a business had as of Jan. 31, 2020. It can be used to:
- Keep employees on payroll
- Pay for sick leave
- Meet increased production costs due to supply chain disruptions
- Pay business obligations, including debts, rent and mortgage payments.
Businesses and nonprofits can apply now through the SBA’s online application portal.