The U.S. Small Business Administration and Department of the Treasury this week released a second application form for Paycheck Protection Program loan participants to use in applying for loan forgiveness along with important new guidance. In light of the changes implemented by the PPP Flexibility Act (PPPFA), which increased the covered period from 8 to 24 weeks and also increased the compensation caps for both owners and employees, PPP borrowers may complete the revised full application form or choose to apply with a so-called EZ application if they meet certain criteria (self-employed; didn’t reduce salaries/wages more than 25% nor the # or hours of employees). Using the EZ application eliminates all of the formula work related to deductions for salary and wage rate and/or FTE reductions. Of greater importance for many however may be the fact that the new 24-week covered period two new separate. Under the PPPFA changes, the maximum amount of owners’ compensation increases to the lesser of $20,833 or 2.5/12 of their 2019 compensation (including owners who are W2 employees). Likewise, the cap for employees of the company is also increased – from the previous $15,385 to $46,154 plus the amounts the employer pays for the employee’s benefits. Clearly, these are important and beneficial changes and PPP borrowers should consult with the appropriate professionals to ensure that you are and remain in compliance for loan forgiveness. Further, the CFA has pulled together a webinar on these new requirements for next Wednesday at 1 PM. You can register here to attend it.