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On Friday President Trump signed the Paycheck Protection Program Flexibility Act into law, easing restrictions and deadlines for businesses who received a PPP loan. Although the new law may make loan forgiveness easier for many businesses, the SBA guidelines remain complex and still require proper documentation.
We will be conducting a free webinar on the new PPP Flexibility law, how it applies to your business, and how to best document the use of PPP proceeds to maximize potential loan forgiveness.
Highlights of the new law include:
- Extends the "covered period" under which small businesses can spend the loan proceeds from 8 weeks to 24 weeks, or until Dec. 31.
- Removes the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
- Expands the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to qualify for forgiveness. However, it appears that the 60% is a "bright line" that business must meet or risk losing all eligibility for loan forgiveness.
- Allows small businesses to take a PPP loan and also qualify for a separate, recently enacted payroll tax deferral, currently prohibited to prevent "double dipping."
- Extends the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
- Gives small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
- Extends the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.
If you have questions about a PPP loan, loan forgiveness, or calculating how loan proceeds are spent, please contact Gray, Gray & Gray at (781) 407-0300. We are available to assist your business in navigating the COVID-19 crisis and the "reopening" of the economy.
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Get Back to Business as (Not) Usual
Tuesday, June 9
Gray, Gray & Gray's Director of Strategic Planning, Bryan Pearce, provides a look at how business leaders will need to adapt in the months ahead - from full or partial remote work as the way of the future, to managing a remote workforce, the impact of technology on business operations, business finance in transition, seizing opportunities, and more. Joining Bryan for this important discussion are Bobby Garret, Director of IT at Gray, Gray & Gray, and SPECIAL GUEST Ahmed Fadili, VP, Managed IT Services at Focus Technology, to discuss overcoming the challenges of the remote working environment and changing business landscape from an IT perspective.
Helping Energy Companies Plan for What Comes Next
Thursday, June 11
1:00 - 2:00 pm EDT
Join us for the first in Gray, Gray & Gray's new "Fueling Your Future" energy webinar series. During this special one-hour session, Gray, Gray & Gray Partner Joe Ciccarello, CPA, MST, and Director/Energy Practice Chair Marty Kirshner, CPA, MSA, along with Warm Thoughts Communications President Rich Goldberg and VP of Marketing Services Ben Gutkin, will review important factors that should impact your plans now.
Gray, Gray & Gray is the energy industry's leading accounting and business advisory firm. Warm Thoughts is the nation's premier marketing firm specializing in the propane and heating oil industries.
Stay tuned for additional webinars coming soon!
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Gray, Gray & Gray Coronavirus Response and Resource Page
As Coronavirus continues to impact our daily lives, including the way in which we conduct business, here you will find ongoing updates on Gray, Gray & Gray's response to the outbreak as well as important resources. At Gray, Gray & Gray, we remain committed to helping our clients and friends successfully manage their businesses and individual finances during this challenging time.
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(781) 407-0300
The information contained in this communication (including any attachments and/or re-directs
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