Paycheck Protection Program (PPP): Loan Forgiveness Update
Business owners who received a PPP loan from the Small Business Administration (SBA), should be aware that the SBA has updated the loan forgiveness applications. Loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
There are two applications for SBA Loan Forgiveness:
- General PPP Loan Forgiveness Instructions and Application.
- PPP EZ Loan Forgiveness Loan Instructions and Application. Self-employed business owners may qualify for the PPP EZ pathway (simpler form and less documentation) if they meet the following criteria:
- 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%
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As we continue to move forward with the reopening of businesses, we will share additional information via this newsletter. Please share this information with other businesses. Subscribe to this newsletter list by signing up for the COVID Business Assistance list or COVID Business Assistance for Restaurants list.
If you are interested in learning more, please contact the Economic Development Manager, Jennifer Chen, at email@example.com or 650-522-7009.