Congress has steps taken steps to simplify the Payroll Protection Plan (PPP) and allow for greater flexibility. The Senate and House have both passed the PPP Flexibility Act, which the President is expected to sign into law today, June 5, 2020. The bill will give business owners more time to use the PPP money and allow more flexibility in how they spend it.
Key changes are:
- The amount required to be used for payroll was lowered to 60%. A stipulation was added that if the 60% threshold is NOT met, then none of the PPP loan will be forgiven.
- The period for repaying any unforgiven loan balance was extended to 5 years.
- The period during which to use the PPP money was extended from 8 weeks to 24 weeks.
- The deadline to rehire workers was extended to 12/31/2020.
Please keep in mind that 100% of the PPP money may be used for payroll, if needed. Be sure to document how you use the money, so that you can prove you have complied with forgiveness rules.
There is still PPP money available. If you have not applied for a PPP, our consultants can help you to apply and will direct you to a lender who is still taking applications.
To get started, please contact your consultant or fill out the request for consulting form to set up an appointment. For more information regarding PPP, visit the Small business Administration (SBA) Covis-19 page.
UMW Center for Economic Development
The University of Mary Washington Center for Economic Development is in the College of Business, an AACSB accredited business school. The Center for Economic Development operates the UMW Small Business Development Center, the UMW EagleWorks Business Incubation Center, the Government Contracting Assistance Center, and StartUpUMW. The Center is located at the Eagle Village Executive Offices. Learn more at https://economicdevelopment.umw.edu/.