PPP Policy Update #3
Another new update form was issued on 6/24:
Here are some highlights from the newest rules:
- “A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness. If the borrower applies for forgiveness before the end of the covered period and has reduced any employee’s salaries or wages in excess of 25 percent, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period.”
- “A nonpayroll cost is eligible for forgiveness if it was:
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- paid during the covered period; or
- incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.”
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PREVIOUS UPDATE
The President signed H.R. 7010 — the Paycheck Protection Program Flexibility Act — which passed the House of Representatives last week and the Senate this week. The legislation modifies the Paycheck Protection Program (PPP) to help small businesses through a number of key provisions. It extends the time frame that borrowers have to spend their PPP loans, from 8 weeks to 24 weeks, an important step for most PPP recipients. Additional provisions include:
- Lowering the payroll requirements from 75 percent to 60 percent.
- Extending the loan coverage from June 2020 to December 31, 2020.
- Extending loan term from two years to five years, for the portion that isn’t forgiven.
Teresa M. Young has been a consultant to entrepreneurs since 1986, in both retail and B2B sectors. In 1991, she became President of Sign Biz, Inc., a full-service business development company. Young sits on multiple boards, including as Past Chairwoman of both the International Sign Association (ISA) and California Sign Association. She is an accomplished code writer, web developer and contributor to the Git Repository. Young is also an in-demand speaker, engaging business owners with topical and powerful business insights and strategies in support of best business practices and modern marketing strategies under her MintyWorks and Coffee with T brands. 200 click-and-mortar enterprises were established under the Sign Biz business model with more than $19,000,000 worth of SBA-backed funding for these businesses.