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.
Important PPP Forgiveness Update October, 2020: The vast majority of applicants will fill out the 3508S Form, a form which was emailed to you. Borrowers who received PPP loans less than $50,000 are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.