If you’re confused about the latest changes to the Paycheck Protection Program then you’re not alone. PPP has provided 4.5 million loans totaling more $500 billion to businesses so the stakes are high. Let’s take a terrifically quick look at the latest developments.
Here are some of the changes you should be aware of:
- First, business now have up to 24 weeks from the date they receive their loan proceeds to spend the funds on qualified expenses.
- Second, the requirement that 75% of the loan proceeds must be used for payroll costs has been reduced to 60%.
- Third, businesses that don’t spend 60% of their loan proceeds on payroll costs may still be eligible for partial forgiveness of the loan.
- Fourth, restrictions on convicted felons receiving loans have be eased, but not eliminated.
- Fifth, the deadline to rehire staff and still qualify for full forgiveness has been extended from June 30 to December 31, 2020.
- Sixth, some borrowers will have up to five years to repay the loan And finally, if you haven’t applied yet there still may be time to do so. Loan applications must be approved by June 30, 2020.