Updates on the Payment Protection Program (PPP)
Monday, June 29, 2020
Posted by: Leah Konieczka
(Sent on Behalf of the AANP)
Beth Martin | Executive Director
Recently signed into law,the PPP Flexibility Acthas a few significant changes making it easier for small businesses to use the funds and qualify for forgiveness. The changes will:
- Extend the timeline for using funds to Dec. 31, making it much easier for businesses that may not have opened yet or have lowered payroll costs right now.
- Allow lenders to extend the loan term to 5 years.
- Remove the forgiveness penalty if employees can’t be rehired or replaced.
- Changes the amount that must be used for payroll to qualify for forgivenessfrom 75% of total funds to 60% of total loan amount.
- Allow borrowers to get PPP forgiveness and the Payroll Tax deferral.
- Allow business owners touse the funds for rent or mortgage payments as well as utility bills.
To apply for a PPP Loan, please use the most up to date forms linked below. Please note, the SBA will stop approving loans on June 30.