Volume 24 I Tuesday, June 16, 2020
On June 5, President Trump signed HR 7010 (“Act”) that amends key parts of Payroll Protection Program (PPP) that related to the forgiveness of loans made to small businesses. PPP is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP was developed by the US Senate Committee for Small Business and Entrepreneurship and was funded with $350 billion.

Below are the main provisions of the act.
First , the Act extends the June 30 application deadline to apply for the loan to December 31, 2020.

Second , PPP was designed to provide around 10 weeks of cash flow by covering payroll and other expenses during that period of time. Now if a company’s expenses in 10 weeks did not reach its pre-COVID-19 amount, the Flexibility Act extends the period to use the PPP money to 24 weeks.
Third , the Act establishes a minimum maturity of five years for the PPP loan with a remaining balance after any forgiveness. The bill also extends the covered period during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness.

Fourth , the Act raises the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%.

Fifth , the Act extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan. The forgivable amount, however, is determined without regard to a reduction in the number of employees if a company is (1) unable to rehire former employees and is unable to hire similarly qualified employees, or (2) unable to return to the same level of business activity due to compliance with federal requirements or guidance related to COVID-19.

Sixth , As originally passed, the PPP allowed a company 2 years to pay back money if the loan amount wasn’t forgiven. The Act extends that period to 5 years.

Seventh , the Act allows a company to defer payments until it receives compensation for forgiven amounts. Recipients who do not apply for forgiveness shall have 10 months from the program's expiration to begin making payments.

Eighth , the Act also eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.
Clarification On Headcount For PPP Loan Forgiveness

On the issue of maintaining headcount when the company has not returned to the same level of business activity from before Feb. 15, 2020 –
  • The headcount will be forgiven if the company can document that it is unable to rehire employees;
  • OR hire similarly qualified employees for the unfilled positions by Dec. 31, 2020,
  • OR the company has not returned to the same level of business activity that it was at before Feb. 15, 2020, due to compliance with federal requirements or guidance set forth between March 1-Dec. 31, 2020, relating to standards of sanitation, social distancing, or other worker or customer safety requirements related to COVID-19.
So, not having the same level of business activity from before the crisis is not enough – the reason for not achieving the level of business activity has to be a result of the COVID-19 related guidance about sanitation and safety.
Focus On Your Customers' Needs & Stay Relevant
So, here we are managing (or is it enduring?) another week of our new lifestyle.

As many of you have experienced, it's difficult to connect with new prospects and gain engagement as a new supplier or solution partner. So during this time of unusual circumstances, let's look at what we can do as sales professionals to remain successful when things return to “normal.”
Ask The Experts:
Reopening Your Business:
What You Need To Know

Monday, June 22 I 11am-12pm I Free Webinar

The COVID-19 pandemic has altered our lifestyles and work practices in ways that were unimaginable just a few short months ago. As printing operations get back into full production, preventing and managing exposures to the COVID-19 virus are top of mind for owners, managers and operators. In order to provide a roadmap of actions that must be taken, PRINTING United Alliance has assembled a comprehensive COVID-19 Exposure Prevention, Preparedness, and Response Plan for you.

In this 60-minute webinar, we will cover the contents of the plan where you’ll gain insights on:

  • Status of state reopening strategies, where they are and what they are requiring
  • Preventing transmission with sanitation and other distancing procedures
  • Use of personal protective equipment as you reopen
  • What to do if an employee becomes infected
  • Communicating with employees regarding their roles and responsibilities

Questions? Email at cswebinars2@napco.com or give them a call at (215) 238-5300.
Additional Resources to Get You Started
In these unprecedented and uncertain times, PIA San Diego is committed to providing the printing and graphic arts community with the most up-to-date resources on the ongoing COVID-19 situation.
Phone: 858.800.6900 I Email: Info@piasd.org