Major changes made to Paycheck Protection Program

As you are probably aware, there have been major changes in the Paycheck Protection Program. The SBA now allows recipient companies an extended period in which they may be able to use their PPP funds from 8 weeks to 24 weeks. Also, only 60% of the proceeds need to be paid out as wages and the filing deadline for submitting your application for forgiveness has been extended to December 31, 2020.

Unfortunately, the Full Time Employee Equivalent safe harbor requirement date of June 30, 2020 has been pushed back to either the date their FTEE forgiveness application is filed or December 31, 2020. Recipients that may have met the terms of the safe harbor on June 30 may not be able to do so at these later dates.

You will be submitting your PPP Loan Forgiveness Application to your lender. This application can be made either on SBA forms or any application designed by your lender. It appears that many lenders are creating online applications to accept your PPP Forgiveness request.

The amount of loan forgiveness is dependent on how the funds were used, how many full time employee equivalents you had post COVID-19 versus pre COVID-19 and whether you choose to follow the original PPP rules or the revised rules.

As there are mutterings of a new set of changes coming, there appears to be no rush to apply for forgiveness. Many lending institutions are requesting that any company who received PPP funds of less than a certain amount need only to certify that they met the requirements of full forgiveness and many recipients that met the June 30 Safe Harbor are complaining that the rules were changed in mid-stream.

We will certainly be available to assist you in your application process. Our fee for this service will based on firm’s normal billing rates with a 25% discount for current business conditions.