PPP Forgiveness: EZ Form & Updates (6/19/2020)
On June 16, the SBA released a revised PPP Loan Forgiveness Application along with an "EZ" two-page version of the form for borrowers who meet certain criteria. During this webinar recorded on June 19, Mark Betts from ASAP Accounting & Payroll provides an overview of the PPP EZ Forgiveness Application and other updates per the PPP Flexibility Act. CPA Brad Tafoya and Alexander Price from Citizens State Bank also help field PPP questions and provide tips on how to maximize loan forgiveness (Hint: spend as much as you can on allowable payroll costs).
On June 22, the SBA released its 20th PPP Interim Final Rule (IFR), which revises the 14th PPP IFR on Loan Forgiveness (originally posted 5/22). This IFR clarifies a few items discussed in this webinar:
- You may apply for forgiveness as soon as you spend all y our PPP funds and meet forgiveness requirements (or safe harbor exemptions)
- You are exempt from the FTE forgiveness requirement if your business activity was limited by local public health orders and regulations in place at any time between March 1 - December 31, 2020
- Compensation limits and guidance for owners, owner-employees, self-employed individuals, and general partners (essentially lesser of 8/52 of 2019 compensation or $15,285 if using an 8-week covered period; or 2.5/12 of 2019 compensation or $20,833 if using 24-week covered period); employer retirement and health insurance contributions may impact those amounts
Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take in response to the COVID19 Pandemic are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.