PPP Loan Forgiveness Rules Could Be Relaxed
With rising concerns about time restrictions and payback periods, last night the House of Representatives passed a bill developed to help small business owners. Not only would the bill provide more flexibility on how to utilize aid given for the coronavirus but also for those who qualify for forgiveness. The Senate has a similar bill, but has not passed yet.
The Plan would:
· Lower the amount of money small businesses are required to be spend on payroll from 75% to 60%
· Extend the period business have to utilize funds from two months to six months
· Change June 30 time limit to rehire employees
· Broaden the time recipients have to repay their loan
· Let companies who receive loan forgiveness defer payroll taxes
For more information, please visit https://www.cnbc.com/2020/05/28/coronavirus-stimulus-house-passes-changes-to-ppp-small-business-loans.html.
We will continue to follow the progress of new information regarding the PPP Loan. If you have any questions, please contact 781-209-1188.