Joseph Most, J.D.
6.16.20 | Client Alert – COVID-19 Update
The Paycheck Protection Program (PPP) deadline for borrowers to obtain a forgivable loan is June 30, 2020 and funds are still available. In light of the Paycheck Protection Program Flexibility Act (PPPFA),1 signed into law on June 5, 2020, small business owners adversely impacted by the COVID-19 pandemic have greater flexibility to spend loan funds and still obtain forgiveness. Potential borrowers who may have been concerned about the program’s initial 8-week loan period and 75% payroll cost requirement should now consider whether the new 24-week period and lower 60% payroll cost threshold would allow them to spend more of their potential loan proceeds on eligible costs. If any portion of the loan is not forgiven, borrowers have a new minimum of 5 years maturity to pay off their loan.
The revised loan application form (dated June 12, 2020) is available on the SBA’s and Treasury’s websites and a revised loan forgiveness application is expected shortly.
Berdon LLP New York Accountants