SBA Rolls Out New, Revised PPP Forgiveness Details

WASHINGTON, DC – The Paycheck Protection Program (PPP) provided a much-needed lifeline to many rural and ag-related businesses – including farmers and ranchers. The program, administered by the Small Business Administration (SBA), allowed small and medium-sized businesses to apply for and receive operating loans from local banks to provide funds to keep workers employed during the COVID-19 lockdown. For those who received the loans, which may be forgiven if the borrower meets certain requirements, some have struggled to meet some of the timelines set by SBA for forgiveness – one, in particular, is using 85 percent of the loans to pay employees over an eight-week period. Congress changed the law to allow SBA to relax some of the requirements and on Wednesday released a three-page “EZ” PPP loan forgiveness application to help borrows meet the new requirements. Form 3508EZ applies to borrowers who applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees, or who did not reduce salary or wages for any employee by more than 25 percent. The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers.
(SOURCE: American Bankers Association)