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Trump administration releases new PPP loan forgiveness forms

Trump administration releases new PPP loan forgiveness forms
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The Trump administration on Wednesday released a new, shorter version of the loan-forgiveness application form for certain borrowers under the Paycheck Protection Program (PPP), after lawmakers urged the administration to streamline the loan-forgiveness process.

The Small Business Administration (SBA), in consultation with the Treasury Department, released a three-page "EZ" form.

The departments said that this version of the form can be used by borrowers that are self-employed or have no employees, did not reduce salaries and wages by more than 25 percent and did not reduce the number and hours of their workers, or experienced reductions in business activity due to the coronavirus and did not reduce the salaries and wages of employees by more than 25 percent.

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The SBA also released a new version of the full loan-forgiveness application that takes into account legislation President TrumpDonald TrumpNoem touts South Dakota coronavirus response, knocks lockdowns in CPAC speech On The Trail: Cuomo and Newsom — a story of two embattled governors McCarthy: 'I would bet my house' GOP takes back lower chamber in 2022 MORE signed earlier this month to ease certain requirements for borrowers. The five-page full form posted on Treasury's website contains similar material to the initial 11-page version, but does not include the instruction pages in the initial version.

The new forms come after lawmakers on both sides of the aisle urged Treasury and the SBA to simplify the loan-forgiveness process, particularly for businesses that received loans of small amounts. Lawmakers expressed concerns that the complexity of the initial form would lead many businesses to feel like they had to hire lawyers and accountants in order to complete the application.

Under the PPP, small businesses can receive loans that are forgiven if they use the proceeds for payroll, mortgage interest, rent and utility costs and they maintain employee and compensation levels. The program was created under the $2.2 trillion coronavirus relief law that Trump signed in late March. Trump subsequently signed legislation in April to increase funding for the program, and signed legislation in early June that gives businesses more flexibility under the program.