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06/17/2020

Self-employed PPP Borrowers: New Streamlined PPP Loan Makes Forgiveness Easier

It's now simpler to ask for forgiveness

Sole proprietors and self-employed individuals who received a loan through the federal Paycheck Protection Program now have an easier way to ask for forgiveness.

The Small Business Administration has released what it’s calling an “EZ Forgiveness Application,” which the agency says will require “fewer calculations and less documentation” and reduce the bureaucratic burden for smaller recipients.

Almost 20 percent of the PPP program’s 4.5 million loans were for under $100,000, according to the SBA’s most recent report, but many borrowers have felt stifled by the confusing forgiveness process and its thicket of red tape. Earlier this month, Congress passed legislation to give the PPP program more flexibility, including reducing the percentage that recipients must use on payroll from 75 percent to 60 percent. The forgiveness period was also extended from 8 to 24 weeks.

Please select this link to read the complete article from Fast Company.

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