New Changes to PPP Forgiveness!
How does this affect Your PPP loan forgiveness? Find out all you need to know from leading local experts.
Wednesday, July 1, 2020* | 10-11:30AM | 💻 via Zoom
*Note new date
Below is an updated summary of what we know as of now:
· Borrowers have a 24 week period to use the funds (instead of the original 8 weeks). Loans made on or after June 5th are automatically a 24 week period, loans before June 5th have the option of the 8 or 24 week period.
· The threshold for payroll expenditures has dropped from 75% to 60% in order to be eligible for full forgiveness.
· Borrowers can use the 24 weeks to restore workforce and wage levels to pre-pandemic levels in order to be eligible for full forgiveness, this must be done by December 31, 2020 (previously June 30, 2020).
· New PPP loans (on or after June 5th) will have 5 years to repay the funds not forgiven. Existing PPP loans (pre June 5th) can be extended up to 5 years (from 2 years) if the lender and borrower agree. Interest rate remains at 1%
· Borrowers who received funds can now also delay payment for the employer portion of 2020 Social Security tax (50% repaid in 2021 and 50% repaid in 2022)