A new law signed on June 5, 2020, modifies the “PPP” program to make it easier for employers to use the loan and also have it forgiven (i.e. not have to repay it).
- You now have 24 weeks to spend your funds, up from eight weeks .
- You need to spend 60% of the loan on payroll, down from 75%.
- The covered period of the loan now ends Dec. 31 instead of June 30.
- Employer payroll tax payments may be deferred through the end of 2020.
- Your business will not lose any loan forgiveness eligibility if you can show that some employees declined to return to their jobs or the pre-pandemic headcount is no longer required.
- The payback period for new loan applicants has been extended from two years to a minimum of five for those not seeking or who are ineligible for forgiveness.
This is good news for all employers who obtained a PPP loan. Funds are still available if you have not yet done so.
See our Services Page for more on how we can help you.