Video source missing

PPP Loan – Major Update

PPP Loan Update


Today is June 11, 2020. There is a major PPP loan update that means more time and more flexibility for businesses. Take a listen. Subscribe to my newsletter.

Here’s a summary of important PPP Loan changes. Business Impact NW is a great resource for Washington Businesses.

✔️ Extended “covered period” (loan use period) for loan forgiveness from eight weeks after the date of loan origination to 24 weeks after the date of loan origination, or Dec. 31st, 2020.

  • Borrowers who have already received PPP loans retain the option to use an eight-week “covered period” (loan use period).

✔️ Lowered spending requirement on payroll expenses from 75% to 60%. If less than 60%, borrower is still eligible for partial forgiveness.

✔️ Borrowers won’t have to make employer payroll tax payments through the end of 2020.

✔️ Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30

✔️ PPP Loans issued before June 5, 2020 will still be subject to a two-year payback period, although banks are allowed to extend that to five years if they so desire. PPP loans approved after June 5, 2020 will have a five-year payback period. The period applicable to your loan will be based upon the date the recipient received a loan number from the SBA.

  • BIN will be accepting PPP Loan applications through June 28, 2020. Please submit your application and upload supporting documents via this link: https://businessimpactnw.org/loan/ppp/

✔️ Payment of PPP loan principal, interest and fees are deferred until forgiveness is remitted to the lender, only if the borrower applies for forgiveness within 10 months after the last day of the covered period.

Sources:


ENJOY THE SHOW?

Don’t miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify or Google Podcasts.
Leave us a review in iTunes.
Have a money question you want me to answer? Submit one here.