Changes to the SBA Paycheck Protection Program (PPP)

Over the last few months there have been a number of changes to the SBA Paycheck Protection Program (PPP).

The President signed a bill today (Friday) providing for some new PPP changes. 

Today’s revised PPP would be inclusive of the following:

  • Extend the expense forgiveness period from eight weeks to twenty-four weeks or December 31, 2020, whichever comes first
  • Reduce the 75 percent payroll ratio requirement to 60% for forgiveness eligibility
  • Increase 2-year loan repayment restrictions for future borrowers to a 5-year window
  • Employers receiving loan forgiveness can defer employer’s share of Social Security payroll taxes
  • Extend the June 30 rehiring deadline to December 31, to align with the extended “covered period” definition
  • Exempt employers from rehiring requirement if unable to attain pre-covid levels because of public health/safety limits or spacing requirements

As of last night, (Thursday) SBA had approved just over $510 billion in loans out of the $659 billion funded by Congress to date. This means there are still funds available.

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