Changes to the Paycheck Protection Program (PPP) were signed into law June 5th. Included among these were the following:
- The original covered period for using the funds was expanded from eight weeks to 24 weeks, and
- the percentage of funds used for payroll costs was reduced from 75% to 60%.
This was great news for many business owners who were finding it very difficult, if not impossible, to achieve full loan forgiveness. The Small Business Administration and the US Treasury department further clarified that businesses who do not meet the 60% threshold can still qualify for partial loan forgiveness.
On June 16th, the SBA released a new PPP Loan Forgiveness Calculation form, and an updated application form. If you have not already applied for the PPP loan please note that you only have until June 30th to apply. Talk to your CPA right away if you have questions, or if you need help deciding whether or not you should apply. For more information on the PPP loan, forgiveness application, and other Covid-19 relief options, please talk to your CPA or visit the SBA Coronavirus Relief Options page here: www.sba.gov/funding-programs/loans/coronavirus-relief-options