Significant changes to the PPP loan program as a result of the new bill are as follows:
1. Changed Maturity of loans remaining from 2 years to 5 years for any amounts that are not forgiven
2. Extended covered period to spend the money on eligible costs from 8 weeks to 24 weeks
+ For those who already received the loan, can elect to use 8 weeks instead of 24 weeks if you want
3. Changed the requirement that 75% be spent on payroll to only 60%
4. Added a Cliff whereby if less than 60% is spent on payroll , then NO amount will be forgiven. This is different than the prior PPP rules, whereby you could still receive a pro-rated amount if less than 75% was spent on payroll
5. Changed date of rehire exemption from June 30 to December 31
6. All businesses are eligible to defer payroll taxes
Click HERE to read the entire bill (which is only 10 pages!)
Click HERE for an article that summarizes the bill and addresses questions that still need to be answered that we are waiting on further guidance.
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