New legislation passed the House and Senate this week and was signed by the President that provides new guidance and flexibility to existing and future Paycheck Protection Program recipients. Our team at Praxia Partners has been working with small businesses throughout central Ohio to help navigate the PPP process, access funds, and now earn forgiveness.
Attached is a presentation, based on the current status of the program outlining how to earn forgiveness. Here are a few of the key highlights that will impact many of our borrowers.
- You can now spend your money over a 24 week period, as opposed to an 8 week period, giving applicants a longer period of time to use their loans and qualify for forgiveness.
- You now only have to spend 60% of your loan on payroll costs, as opposed to the 75% in the original bill.
- The deferral period for any portion of the loan that is unforgiven has increased from 6 months to 10 months.
It is likely that the SBA will continue to roll out guidance for this program. As they do, we will update you with what you need to know.
We know this program is confusing, and we’re here to help. If you have any questions, please reach out to us at firstname.lastname@example.org and we will work with you to get the answers that you need.
Note: If you haven’t yet applied, or know somebody who could use support through this program, there is still significant funding available. As of today, funding will remain available until December 31st, or whenever the funds dry up. We’re anticipating that the added clarification for the program will spark renewed interest, and we encourage interested applicants to apply as soon as possible. Praxia Partners is continuing to partner with Commodore Bank to assist applicants with their application, and we’d be happy to work with you.