Use It or Lose It: PPP Funding Updates with Congressman Dwight Evans

Join us on Friday, June 26 to hear from Congressman Dwight Evans on important updates to the Paycheck Protection Program. There is still more than $130 Billion available in funds for small businesses to take advantage of. We will also hear from United Bank on the upcoming $100 million in state grants dedicated to historically disadvantaged businesses. Some of the major changes in the PPP funds include:

• Extending the loan forgiveness period from eight to 24 weeks after loan disbursement. Borrowers who have already received PPP loans retain the option to use the eight-week covered period.
• Lowering the forgiveness requirement for borrowers to use 75% of loan proceeds and loan forgiveness amount be used for payroll costs to 60 percent. If a borrower uses less than 60 percent for payroll, the borrower remains eligible for partial loan forgiveness.
• Providing loan forgiveness safe harbor based on reductions in full-time equivalent (FTE) employees for borrowers who are unable to return to the same level of business at which they were operating before February 15, 2020 due to compliance with COVID-19 requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration.
• Providing loan forgiveness safe harbor based on reductions in FTE for borrowers unable to rehire employees or hire similarly qualified employees for unfilled positions by December 31, 2020.
• Increasing to five years the maturity of PPP loans approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
• Extending the deferral period for payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).