PPPFA Changes and Impacts on You
On June 5, 2020 the President signed a new law called the Paycheck Protection Program Flexibility Act. This new bill was passed in hopes that it will make it easier for business owners to apply for and receive full forgiveness on PPP loans. There were 5 major changes to the original provided guidance.
Check below to see the Top 5 Changes you need to know about the new PPPFA:
Helps by reducing the amount of loan needed to be spent on payroll from 75% to 60%. This increases the amount of funds available for your other expenses from 25% to 40%!
Gives business owners flexibility. Instead of having to spend the money in just eight-weeks after the funds were received, you'll now have twenty-four-weeks.
Pushes back the deadline to rehire workers in order for their salaries to count towards forgiveness from June 20, 2020 to December 31, 2020.
Eases rehire requirements by including additional exception rules. Prior, only employees who rejected an offer to be rehired could be exempt. Now,
- If you're unable to rehire an individual who was an employee (your employee refuses to return for whatever reason) on or before February 15, 2020,
- You're able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020 or,
- You're able to demonstrate an inability to return to the same level of business activity as you were operating at prior to February 15, 2020.
Extends your repayment term from 2 years to 5 years - in the event loans or portions of them aren't forgiven.
While these changes increase the amount of time you have to document, track and apply for forgiveness - you need to be performing these functions right now. Our team can help ensure that you'll be ready to apply for forgiveness.
We understand that with all the changes and new laws brought on by the pandemic, you likely have a lot on your shoulders. So, click here to read 3 simple steps to learn how we can help you get back to doing what you do best – managing your business.
For more information visit our COVID-19 Guidance Center.
Tips of where to get your information about the virus
Centers for Disease Control and Prevention CDC.gov
Indiana State Department of Health News ISDH.in.gov
World Health Organization WHO.int
Where to find local updates about the virus
Decatur County Health Department Facebook Page
Bartholomew County Health Department Facebook Page
Ripley County Health Department Facebook Page
Franklin County Health Department Facebook Page
North Vernon Plain Dealer & Sun Homepage
We are committed to serving clients with care, and we are confident we are taking precautionary measures to promote the health and safety of our staff and clients. We know that this is a stressful time for everyone, and we hope that you, your family and our community stay safe.
Please call us at 812-222-1559 if you have any questions