PPP Application Period Ends; Treasury Department Releases Revised Forgiveness Application Forms and Revises Regulatory Standards Related to PPP Loan Forgiveness

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Today, June 30, 2020, marks the last day that a small business may apply for a COVID-19 relief loan under the Payroll Protection Program (“PPP”). In the run-up to this deadline, the Treasury department has issued a series of regulations and forms that govern PPP “Forgiveness Criteria” – the conditions that a PPP loan recipient must meet to be relieved from the obligation to repay the loan. These regulations and forms, including a Long Form and an EZ Form, implement the recently passed Payroll Protection Program Flexibility Act (the “Act”), and redefine and ease certain Forgiveness Criteria in favor of PPP loan recipients. It is critical that PPP loan recipients that intend to apply for forgiveness understand the concepts contained in the Long Form and EZ Form forgiveness application, and the Revised Regulations.

Details can be found in our COVID-19 Alert.