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Major Updates Announced for Payment Protection Program

Major Updates Announced for Payment Protection Program

Published Thursday, June 18, 2020
by Jaime Barb
Major Updates Announced for Payment Protection Program

The Small Business Administration and U.S. Treasury have rolled out major updates to the Paycheck Protection Program, offering automatic forgiveness for certain independent contractors and creating a broader application form for forgiveness. Additionally, the agencies created a streamlined ‘EZ Forgiveness App’ self-employed borrowers with no employees, those that did not reduce employee wages by more than 25%, experienced reduction in business activity due to COVID-19 health directives but didn’t reduce salary or sages by more than 25%.
 
“NAR has been working closely with congressional leaders to loosen forgiveness requirements,” says Shannon McGahn, senior vice president of government affairs for the National Association of REALTORS®. “Small-business owners don’t have the resources to hire lawyers and accountants like large companies, and they shouldn’t be burdened with paperwork and red tape at a time when they’re trying to stay afloat. These new guidelines should go a long way to help.”RESOURCES: