June 17 (UPI) — Amid mounting criticism from business owners and politicians, the Treasury Department and Small Business Administration on Wednesday revised loan forgiveness application forms for the Paycheck Protection Program, making it simpler to fill out and qualifying for forgiveness easier.
The new three-page EZ form can now be filled out instead of the complicated 11-page document that brought so many complaints. The EZ form applies to those who are self-employed and have no employees; or did not reduce the salaries or wages of their employees by more than 25 percent and did not reduce the number of hours of their employees; or experienced reductions in business activity as a result of health directives related to COVID-19.
“The EZ application requires fewer calculations and less documentation for eligible borrowers,” a statement from SBA said. “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. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.”
Murky rules along with confusion about the loan application and who qualifies to get the loan forgiven have all plagued the Paycheck Protection Program since its inception as part of the massive federal CARES Act passed by Congress to address the effects of coronavirus restrictions.