The Payroll Protection Program (PPP) was established by the CARES Act in late March. The program which is administered by the Small Business Administration (SBA) allows for businesses with fewer than 500 employees to obtain loans that could be 100% forgivable. Several important details of the program were modified by the Paycheck Protection Program Flexibility Act in early June.
On June 17, the Treasury Department released a new "EZ" form for PPP loan forgiveness that is available to borrowers who (i) are self-employed, or (ii) did not reduce wages by more than 25 percent and did not reduce the number or hours of their employees, or (iii) experienced reductions in business activities as a result of health directives related to COVID-19 and did not reduce wages by more than 25 percent. You can read Treasury's announcement on the new form here.
On July 1, Congress passed S. 4116 to extend the PPP application deadline from June 30, 2020, to August 8, 2020. The President signed the bill on July 4, 2020.
On October 8, the Small Business Administration announced a
simplified Payroll Protection Program (PPP) application for all loans of
$50,000 or less. SBA
also eased the burden on PPP lenders, allowing lenders to process forgiveness
applications more swiftly. The new application is here, along with instructions. The Interim Final Rule is here.
The American Institute of Certified Public Accountants has released this PPP loan forgiveness calculator that is free and available for use to any PPP loan borrower. You can find more information about the tool in this press release and watch this demo video.
Applying for a PPP Loan
SBA's PPP website
Treasury Department's FAQs
Summary of application form and instructions
PPP Loan Forgiveness
PPP loan forgiveness application for loans $50K or less and instructions
PPP loan forgiveness application (revised 6/16/20) and instructions
PPP loan forgiveness EZ application and instructions
FAQs from August 4, 2020
Summary of regulatory guidance
Regulatory guidance for lenders
Paychex PPP loan forgiveness estimator
AICPA PPP loan forgiveness calculator
PPP Flexibility Act
American Institute of Certified Public Accountants summary
PPP Flexibility Act text
Video to share with clients on PPP loans and forgiveness
Payroll costs under the PPP
Letter for lenders
FAQs for clients