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.