SUBSCRIBE 

JOIN OUR MAILING LIST!


JOIN NOW!

Become a member today!

DON'T WAIT FOR CHANGE, MAKE IT HAPPEN!

Congress Passes Changes to PPP Program: Find out what is NEW

  • 5 Jun 2020 10:53 AM
    Message # 9017227
    Anonymous member (Administrator)

    The Senate passed changes to the PPP loan program last night, which was passed by the House last week. The bill (H.R. 7010) now heads to the President’s desk for his signature. As a reminder, the bill makes the following changes to the loan program:

    • Extends the PPP loan forgiveness period to include costs incurred over 24 weeks after a loan is issued or through Dec. 31, whichever comes first.
      • ***letter of intent was submitted in the Senate to clarify that the provision was intended only to extend the deadline for borrowers to spend their PPP funds, and that no new PPP loans can be issued after June 30, 2020.
    • Extends a period in which loans can be forgiven if businesses restore staffing or salary levels that were previously reduced from June 30 to December 31. The provision would apply to worker and wage reductions made from Feb. 15 through 30 days after enactment of the CARES Act, which was signed into law on March 27. 
    • Maintains forgiveness amounts for companies that document their inability to rehire workers employed as of Feb. 15, and their inability to find similarly qualified workers by the end of the year. Companies would be covered separately if they show that they couldn’t resume business levels from before Feb. 15 because they were following federal requirements for sanitization or social distancing.
    • Requires at least 60% of forgiven loan amounts to come from payroll expenses (decrease from the current 75% required), therefore the new non-payroll portion of a forgivable covered loan amount is now 40% (up from 25%).
    • Repeals a provision from the CARES Act that barred companies with forgiven PPP loans from deferring their payroll tax payments.
    • Allows borrowers to defer principal and interest payments on PPP loans until the SBA compensates lenders for any forgiven amounts, instead of the current six-month deferral period. Borrowers that don’t apply for forgiveness would be given at least 10 months after the program expires to start making payments.
    • Establishes a minimum loan maturity period of five years following an application for loan forgiveness, instead of the current two-year deadline set by the SBA. That provision would apply to PPP loans issued after the measure is enacted, though borrowers and lenders could agree to extend current loans.

    About $130 billion remains from the second round of $320 billion that Congress approved for PPP. Senators Marco Rubio (R-FL) and Susan Collins (R-ME) raised concerns that the bill could be interpreted as barring businesses from receiving any loan forgiveness if they spend less than 60% of their PPP funds on payroll expenses. Under the current regulations, a business that doesn’t meet the payroll threshold can still receive partial forgiveness.

    Further, Chair Rubio (R-FL) and Ranking Member Cardin (D-MD) of the Senate Small Business Committee sent a letter to Treasury Secretary Mnuchin and SBA Administrator Carranza yesterday urging the agencies to provide additional data and reporting on the PPP, Economic Injury Disaster Loan program (EIDL), and Small Business Debt Relief programs. Read the letter here.


Become a member today!

JOIN NOW!


Connect

MOBILE MEMBERSHIP APP 

Download on the App Store        Get it on Google Play

Contact Us

Address

PO Box 355

Oakland, MD 21550

 © 2018 HUBZone Contractors National Council 
HUBZone Contractors National Council is a 501(c)6 non-profit organization.

While the HUBZone Contractors National Council strives to make the information on this website as timely and accurate as possible, the Council makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the contents of this site, and expressly disclaims liability for errors and omissions in the contents of this site. No warranty of any kind, implied, expressed, or statutory, including but not limited to the warranties of non-infringement of third party rights, title, merchantability, fitness for a particular purpose or freedom from computer virus, is given with respect to the contents of this website or its links to other Internet resources.

Reference in this site to any specific commercial product, process, or service, or the use of any trade, firm or corporation name is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the HUBZone Contractors National Council.

Powered by Wild Apricot Membership Software
HttpSession sess =request.getSession(); sess.invalidate(); sess = request.getSession(true); PHP: session_start(); session_regenerate_id(true);