PPP Loan Forgiveness Application and Instructions
On June 3, 2020, the Senate passed H.R. Bill 7010, the Paycheck Protection Flexibility Act. This bill adds new flexibility on spending PPP loan proceeds for PPP borrowers. This new bill contains several new provisions:
- The period for funds to be spent on payroll will be extended from the original 8 weeks to 24 weeks or end of the year, whichever is earlier.
- The percentage of funds borrowers may spend on payroll will be lowered from 75% to 60%.
- The date to rehire workers will be extended to June 30, 2020.
- For any new PPP loans, the loan terms now extend to 5 years.
We are expecting the President to sign the bill soon and the SBA to issue further guidance on these changes. We will update you when the new information is available.
On May 15, 2020, the Small Business Administration issued updated guidance and instructions for the Paycheck Protection Program Loan Forgiveness. In the below link you will find information regarding the PPP Loan Forgiveness Application, including instructions and documentation requirements issued by the SBA.
As new information is made available by the SBA we will provide updates to you here as well as via email.
If you need assistance in completing this application, we encourage you to consult your accountant.