Paycheck Protection Program (PPP) Loan Forgiveness
If you received a Paycheck Protection Program (PPP) loan, standard and EZ application forms for forgiveness have been issued by the Small Business Administration (SBA), but many banks have stated they are awaiting additional guidance from the agency before they can process forgiveness applications.
Several recent changes to the forgiveness requirements have taken effect. The initial 75/25 rule stating that 75% of funds must be used for payroll expenses has been changed to 60/40, so up to 40% could be used for non-payroll allowed uses, such as rent and utilities.
Additionally, the covered period during which expenses may be eligible for forgiveness (assuming all requirements are met) has been extended from 8 weeks to 24 weeks, but in no event longer than December 31. Note that the agency has issued a checklist to determine whether you qualify to use the EZ application form.