For today’s email blast I want to do a quick recap of tax life since PPP entered our lives and keep you up to date with the latest major changes.
The Payroll Protection Program (PPP) opened on April 3rd and we have been researching and educating continuously along the way. Finally in late May, as several clients were in week 6 of the 8 allowed, the loan forgiveness application was finally issued. Then on June 3rd, a mere week away from what we thought was our first due date, legislation was passed modifying the PPP forgiveness rules. It is like running a race in which the rules and the finish line keep moving.
Here are the highlights of the Paycheck Protection Program Flexibility Act of 2020--
**Extended the covered period for loan forgiveness from 8 weeks to 24 weeks
**Lowered the requirement that 75% of the loan proceeds must be used on payroll to now only 60%
**Extended the time frame for the safe harbor from June 30, 2020 to December 31, 2020
**Increased the payback period of the amount not forgiven from 2 years to 5 years
**Extended the deferral period from 6 months to 10 months
A copy of the Paycheck Protection Program Flexibility Act of 2020 can be found at https://www.congress.gov/bill/116th-congress/house-bill/7010/text
This new legislation is aimed at helping all business that received the PPP funds have more time to spend it, this will lead to a larger portion being forgiven. All in all it is good, just a bit last minute.
So, we are now waiting for a revised loan forgiveness application. Keep an eye on your email and let us know when your bank gives you direction on how to submit it to them.
If you have not yet applied for the PPP you need to get on it, the last day to apply is June 30, 2020. Call us if you need assistance or have any questions.
Till our next blast