The Paycheck Protection Program (PPP) is designed to provide access to funding so businesses can keep paying their employees and other expenses such as health insurance premiums, rent or mortgage payments and utilities. This critical financial relief will help small businesses return to full operations quicker once conditions improve.
Who can Apply?
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
The Paycheck Protection Flexibility Act of 2020 enacted June 5th came with some changes to the PPP as follows:
- Borrowers who received loans prior to June 5th have the option to extend the 8-week period to 24 weeks
- Borrowers who receive loans June 5 or later have a covered period of 24 weeks after the loan proceeds are received
- The 75% payroll expenditure requirement is reduced to 60%
- ·Borrowers have a longer period of time to restore workforce or salary/wages extended to December 31 instead of June 30th
- PPP Borrowers can now qualify for the deferral of employer’s share of payroll taxes -Social Security payments (6.2%) with 50% due in 2021, remainder due in 2022
- Repayment period extended to five years for loans made on or after June 5th
- Existing PPP loans can have maturity extended if lender and borrower agree
- Interest rate to remain at 1%
The deadline for the PPP loan has been extended from June 30, 2020 to August 8, 2020. If you need assistance with the PPP loan process book a consultation with us today: https://bit.ly/2Xhmqld