The President has signed into law a bill that gives employers more flexibility when using Paycheck Protection Program (PPP) funds and applying for loan forgiveness. Lawmakers supported making changes to the PPP to address complaints from employers that the existing rules were unfeasible.
A summary of the bill and FAQs can be read below, but highlights of the bill include:
**An extension of the 8-week time period for using the funds to 24 weeks or until December 31st, when the program is now set to end.
**An increase to non-payroll percentage of funds which can be used for rent, utilities, etc. from 25% to 40%.
**An extension of the time period to pay back the loan should some of all of the loan not be forgiven from 2 years to 5 years.
**Employers now have until December 31 rather than June 30 to rehire certain laid off workers if they are seeking forgiveness. Some exemptions are acceptable based on employee availability.
Click here to read a summary of the bill. A helpful list of FAQs from the Treasury can be found here.
As always, contact a member of the Crosslin managed accounting team at 615-320-5500 with any questions. We are here to help!