IMMEDIATE MODIFICATIONS: PPP LOAN & NEW LOAN SERVICE
Updated: Jun 24
Provisions to the PPP Loan are as Follows:
Modifies the amount on the loan required to spend on payroll. Initially it was required for a recipient to spend 75% on payroll. It has been changed to 60% allowing more flexibility in how you would like to allocate your funds for other expenses.
Time period to spend the focus was 8 weeks of the date you received the funds to 24 weeks.
Timeline to rehire workers was expanded from June 30 hire date to December 31, 2020. This will allow small businesses to count employees salaries towards forgiveness.
Reduces rehire requirements. This requirement was for the same number of employees to remain on payroll that was used to calculate the loan. Businesses will need to document if they are unable to rehire employees of the recipient by February 15, 2020. They will also have to demonstrate an inability to hire equally qualified employees by December 31 and inability to return to similar levels of business activity prior to February 15, 2020.
Increases the repayment term from 2 years to 5 years.
The PPP Loan Forgiveness Application and instructions now reflect the new revisions. Many small business owners still have rising question, but we hope for additional guidance for the weeks to come. On June 17th the Small Business Administration (SBA) is simplifying how to apply for loan forgiveness under the Paycheck Protection Program. The SBA revised the full forgiveness application in addition to publishing a new EZ version for select borrowers.
The borrowers must meet the following requirements:
“Are self-employed and have no employees; OR”
“Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR”
“Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.”
If you qualify for the EZ application visit:
We encourage you to familiarize yourself with the revisions to the new loan to help with the application process when you apply. If you have any questions about how to calculate the PPP Loan Forgiveness, we are happy to announce we will be providing the following exclusive service for our clients.
Reports for PPP loan forgiveness calculation: $299
Reports and fill out PPP loan forgiveness application: $499
This service will be available in the beginning of July, but clients are welcomed to pre-order the service now to July 6th for a 15% discount. For additional information regarding our service, please contact On-Time Payroll.