I had been wringing my hands at how difficult the SBA made the first Paycheck Protection Program Loan (PPP) Forgiveness Application. It was like they had asked the IRS for advice. The EZ application cuts it down to only one page of numbers. Without a doubt, your bank will be asking you for more proof, but why would you make it so complicated to ask “How much of the loan did you spend?” That isn’t something that you need pages of worksheets to answer.
The vast majority of churches should qualify for the EZ application. I would also guess that the vast majority should choose the 24-week period instead of the 8-week to maximize forgiveness. Watch the video below for the walkthrough:
- Guidance from The Christian Post: https://www.christianpost.com/voices/christian-organizations-use-ez-form-for-100-forgiveness-of-ppp-loans.html
- Journal of Accountancy on 24 vs 8 weeks: https://www.journalofaccountancy.com/news/2020/jun/ppp-loan-recipients-can-apply-early-for-loan-forgiveness.html
- EZ PPP Forgiveness Application: https://www.sba.gov/document/sba-form-paycheck-protection-program-ez-loan-forgiveness-application-6-16-2020
- Previous post on Forgiveness: http://jctaccounting.com/2020/05/22/how-does-my-church-apply-for-ppp-loan-forgiveness/