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06-17-20 | Economic News

Banking Group Asks for Simpler PPP Process - SBA Complies

New EZ Full Forgiveness Application

The Independent Community Bankers of America called on the Treasury Department and Small Business Administration to make the Paycheck Protection Program loan-forgiveness process less complex, and the two governmental agencies teamed up to produce a revised application and an EZ version.

The U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, Paycheck Protection Program loan forgiveness application that they termed was "borrower-friendly," and they 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%.

Earlier, the Independent Community Bankers of America called on the Treasury Department and Small Business Administration to make the Paycheck Protection Program loan-forgiveness process less complex and onerous for borrowers and lenders, stating that, "an unnecessarily complex forgiveness process compromises the PPP's potential to facilitate a strong economic and jobs recovery."

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ICBA president and CEO Rebeca Romero Rainey added, "Borrowers should not have to hire accountants at expensive fees to assist with loan forgiveness."

SBA and the Treasury said that the EZ application requires fewer calculations and less documentation for eligible borrowers.  Details about who is eligible are available in the instructions to the new EZ application form. 

Both applications give borrowers the option of using the original eight-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," according to the statement released by the SBA.

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Filed Under: ECONOMICS, PPP, SBA, BUSINESS

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