The Paycheck Protection Program’s EZ application requires fewer calculations and less documentation for eligible borrowers.

Yesterday, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. The SBA also published a new EZ version of the forgiveness application that 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%.

The EZ application reportedly requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. 

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. According to the SBA, these changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

In early May, the SBA restricted the loans and emergency grants to agricultural businesses only, as those businesses were not eligible to apply for the first round of EIDL funding. As of June 15, the program is now again open to all qualified small businesses and nonprofits, which include dental practices.

Established in March by the federal CARES Act, the EIDL program provides long-term, low-interest loans—and emergency grants of up to $10,000—to small businesses and nonprofit organizations that are experiencing a temporary loss of revenue as a result of economic disruption caused by the current public health emergency.

The EIDL program terms and details include:

  • No application deadline. However, funding for the $10,000 emergency grant is limited and available on a first-come, first-served basis.
  • Loan amounts of up to $200,000 approved without a personal guarantee. Open to businesses with fewer than 500 employees plus sole proprietors, independent contractors and private nonprofits.
  • Terms: 3.75% interest rate (2.75% for nonprofits), up to 30-year repayment and first payment deferred for one year.
  • Borrowers can request that the first $10K of the loan be issued as an emergency advance, which is required to be disbursed within three days and does not need to be repaid.
  • The loan money can be used to pay payroll, debts, accounts payable, rent, mortgage or other bills that the business owner cannot pay due to the public health emergency’s impact.

Businesses may receive an emergency advance even if they are not approved for a loan.