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Seven Key Changes (Changes 1-3) 1. Email this Article. A one-page summary from the Senate explains more about the PPP Second Draw Loans and the PPP improvements in this potential new law. PPP Loan Deadline is June 30 – Still Time to Apply. Required fields are marked *, Founded in 2003, Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. As with the original PPP, your maximum loan size would equal 2.5 times average total monthly payroll costs. There are two applications that you can choose from to complete. No. Funds would also be set aside for businesses with 10 or fewer employees. I’ve devoted most of my professional career to making complex legal and tax concepts understandable to people who do not enjoy reading the Internal Revenue Code or the US securities laws. I’ve heard that after you get the loan funds, the application for loan forgiveness is much longer and more challenging. While I have a law degree (University of Virginia), for most of my working life I’ve created legal, tax, and financial-planning publications, websites, books, and videos. Must companies use the PPP loan funding only for payroll to make it all forgivable? There’s no restriction on applying with multiple lenders. With President Trump’s signature on July 5th, the new application deadline is now August 8, 2020. So if you haven’t applied because you may not have thought your operation isn’t large enough, go for it! On Wednesday, the House passed a measure to extend the Paycheck Protection Program application deadline to Aug. 8. Landlords and nonprofits are eligible for EIDL. The changes overall make it easier for small businesses and self-employed individuals to comply with the Program requirements and obtain forgiveness of the loan. Paycheck Protection Program (PPP) Frequently Asked Questions (FAQs) on Loan Forgiveness There are more than 5,400 lenders participating in PPP. following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, October 10. Up to 40% can be spent on non-payroll expenses. Tax Whistleblower Report — Opportunity For New Administration To Crack Down On Big-Time Tax Cheats? While you must apply for a PPP loan through an SBA-approved lender, you must apply for EIDL directly through the SBA. And as of July 31, the SBA said it still has $130 billion left to lend. myNQDC.com is a sibling website I created on nonqualified deferred compensation. This law lowered the portion of the PPP loan that must be spent on payroll to 60% from 75%. It does not quite make loan forgiveness automatic. If we assume you do not qualify for any rehiring exemptions, when it comes to calculating your forgivable amount, because your workforce is smaller, your forgivable amount will be multiplied by 0.67. More than 65,400 Paycheck Protection Program loans were made in the four congressional districts that encompass most … PPP loan recipients can have their loans forgiven in full if the funds were used for eligible expenses and other criteria are met. There’s been multiple complaints that the data the SBA released was incorrect or drew incorrect conclusions. 12. The legislation would extend the deadline for when the PPP can accept applications for forgivable loans. If you are certain a portion of your PPP loan will be unforgiven and want to conserve cash flow. Important changes to the Paycheck Protection Program include: Despite the clock ticking on applying for a PPP Loan, it’s really not too late. Or is there is no rush? It also expands PPP eligibility to include: Chambers of Commerce (we like that! PPP Application Deadline Extended Following approval by the Senate and House of Representatives, President Trump signed legislation July 4, 2020, extending the deadline to apply for a … If you have a loan of $50,000 or less, and you and your affiliates have combined loans of less than $2 million, consider using Form 3508S. Can a nonprofit or charity apply for the PPP? The law also drops the required payroll expenditure amount from 75% to 60%. First, your question assumes that our leaders in Washington DC will agree to something! However, since you asked, both the House Democrats and the Republican Senate have proposed a PPP extension through the end of 2020 and some revisions. Effective Nov 30, 2020. It also expands forgivable expenses to include PPE and employee protection costs related to Covid-19. ... For details, see the SBA’s revised PPP Loan Forgiveness Application and Instructions or streamlined “EZ” application for eligible borrowers. He’s the president of the Newton-Needham Regional Chamber in the suburbs west of Boston, and in that role he regularly fields questions from businesses about PPP loans. 8. Forgiveness application due date: There is no defined deadline for borrowers submitting the forgiveness application, but borrower payments will be required 10 months after the end of the covered period as explained in FAQ No. Yes, 501(c)(3) nonprofits are eligible, following the same rules. PPP Loan Application Deadline Extended; ... (PPP) loans until August 8, 2020. All rights reserved. The proportion of PPP funding that must be used on payroll costs to qualify for full forgiveness drops to 60% from 75%. We’re at almost 50 FAQs on the PPP from the US Small Business Administration (SBA). The PPP Loan Deadline Gets a Last-Minute Extension with $130 Billion Still Unclaimed A last-minute extension means small businesses have until Aug. 8 … This tool on the SBA’s website can help you find an eligible lender. What’s the attitude and response of the companies in your area when their names appeared on this list? The deadline to apply for a PPP loan was initially June 30, 2020, and was later extended to August 8. And if you don’t dawdle, you’ll hear back on your loan before the June 30 deadline. 6. The new deadline for PPP loan applications is August 8. Five Tax Takeaways From Country-By-Country Data, IRS Says You Don’t Need To Do Anything To Get Your Stimulus Check (And Answers Your Other Questions), Treasury Says Some Stimulus Checks Will Reach Taxpayers This Week. For example: if you received a PPP loan in May 2020 and elect a 24-week forgiveness period, you should apply for forgiveness no later than August 2021 to avoid debt payments. Answer: No. The PPP in brief The original PPP has no requirement to show a specific revenue decline, although you need to make certain certifications, such as on business necessity for the forgivable loan. On Saturday July 4, 2020, President Trump signed a new law extending the deadline for applying for a Paycheck Protection Program (PPP) loan from June 30 to August 8. Borrowers can apply for forgiveness anytime before the loan matures (this is either two or five years from when the loan was disbursed, depending on your specific agreement). The new PPP round, laid out in detail here, would provide loans of up to $2 million for the hardest-hit businesses, those that saw at least a 25% revenue drop in a … Just before the Paycheck Protection Program application deadline at midnight on June, 30, 2020, the Senate passed a bipartisan measure extending the PPP loan application deadline to August 8, 2020. However, the form indicates that it expires 10/31/2020. If you qualify for loan forgiveness, you don’t need to pay it back? Purpose. 5. In its news release, the SBA described the tool as a resource for “pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders.”. I’m never that optimistic. ANSWER: The Small Business Administration (SBA) extended how long the forgiveness application forms (3508, 3508EZ, and 3508S) are good for. If you don’t want to pay a lawyer or accountant to do the initial PPP loan application, given the August 8 deadline, how hard is it to understand and do yourself? The deadline to apply for a Paycheck Protection Program (PPP) loan is fast approaching. © 2020 Forbes Media LLC. 14. Opinions expressed by Forbes Contributors are their own. the forgivable part of the loan), Loan forgiveness remains possible if former employees won’t come back to work, or if revenue in December 2020 is below February 2020 levels, Are self-employed and have no employees; OR, Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR, Experienced reductions in business activity as a result of health directives related to Covid-19, and did not reduce the salaries or wages of their employees by more than 25%. I also coach a high-school tennis team and co-wrote with my wife a popular travel book, Watch It Made in the USA: A Visitor's Guide to the Best Factory Tours and Company Museums. What’s the attitude of local small companies to the PPP? PPP borrowers that obtained a PPP loan before June 5, 2020 will have the option at the time of submission of the PPP loan forgiveness application to elect a covered period of either: (i) 8 weeks from the date the PPP loan was originated; or (ii) 24 weeks from the date the PPP loan was originated. Can I still fire, or give bonuses to, those that work for me? The SBA is under a deadline in which to write the regulations needed to run a new PPP round. The PPP program provides low interest loans to small businesses with up to 500 employees, as well as to self-employed entrepreneurs. You can apply for PPP loans at online sites like PayPal, and Kabbage, as well as through Kabbage. An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. To ensure against fraud, the SBA can still audit and review loans of any size. California Lost Elon Musk, Will 13.3% Tax Or Increases Get You? On July 4, President Donald Trump extended the deadline for PPP loan applications for more than another month. Just be sure and select a credible source. It is estimated that there is still $140 Billion available for small businesses in the PPP … 3. And the average loan size is about $110,187. You can then compare your offers, if you get more than one, and then finally apply for that loan. The Next Phase Of Brexit- VAT And Customs Duty Considerations, Breaking Down The Changes To The Employee Retention Tax Credit In The New COVID Relief Bill, Part 2, Year-End Collection: Tax Oddities Of 2020, Continuing Small Business Recovery and Paycheck Protection Program Act, Paycheck Protection Program Flexibility Act, Extend from 8 to 24 weeks the amount of time you can use the funds while remaining eligible for loan forgiveness, Extend from 2 to 5 years the time new PPP loans must be paid back if the amount provided doesn’t convert into a grant (i.e. From what I’ve heard, most small businesses have been able to apply just with the help of a local banker, but really it’s going to depend on your circumstances, how much time you have, and your ability to dig out some financial history. As it seems there will be a new PPP program soon, should a company still try to apply before August 8? If you had a PPP loan prior to the Paycheck Protection Program Flexibility Act being signed, you can choose to use the original 8-week period instead of the 24-week period. PPP FAQs - Loan Eligibility and Application Requirements. The rules were vague. At Bank of America, the Paycheck Protection Pro… To find out what small-business owners and nonprofit executive directors need to consider before submitting a PPP application, and what relief program could be next to apply for, I sought insights from Greg Reibman. Just type in your information and the SBA works to connect you with lenders in 48 hours. Extends the covered period for loan forgiveness from eight weeks after loan disbursement to 24 weeks • Borrowers who have already received PPP loans retain the option to use an eight-week covered period. While the forms have an expiration date of October 31, 2020 displayed in the upper-right corner, you can still use the forms. The House passed the bill on July 1, sending it to the desk of President Trump to be signed. What else appears to be the difference between the first PPP, with the application deadline of August 8, and the new one that may become law, assuming the Senate GOP version is the general outline of the next PPP? Please note that October 31, 2020 is not the deadline to apply.. Fears of a late-October PPP surprise came to the SBA’s attention because the program’s loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of “10/31/2020” in the upper-right corner. Yes, as long as you carefully follow the guidelines and spending restrictions. PPP Loan Deadline Extended to August 8 The previous deadline of June 30 came and went but there was still more than $130 billion available to businesses in the US. Small businesses still have until August 8 to apply for potentially forgivable loans via the Paycheck Protection Program (PPP), which was extended from its original June 30 deadline. Or search online for one of the many webinars or how-to articles presented by law firms, accounting firms, and others. Here’s the good part: Under PPP 2, businesses could use the funds to purchase protective equipment for employees and customers, including masks and sanitizers. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. The program officially runs out on June 30, 2020. Your email address will not be published. June 30 would have been the last day for a bank to sign off on a loan. On July 4, President Donald Trump extended the deadline for PPP loan applications for more than another month.. Then hope PPP 2 comes along in case you need it as well. Small businesses still have until August 8 to apply for potentially forgivable loans via the Paycheck Protection Program (PPP), which was extended from its original June 30 deadline. Update to PPP Loan Forgiveness Rules, New Application Deadline June 5, 2020 * ALERT – The new deadline to apply for a Paycheck Protection Program Loan is August 8. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Important PPP Loan Dates and Deadlines. The House and Senate have passed a measure to extend the Paycheck Protection Program application deadline to Aug. 8. As for extending the deadline to apply for a PPP loan to Dec. 31 from June 30, Leon LaBrecque, chief growth officer at Sequoia Financial Group … July 5th, the PPP loan applications is August 8 deadline, still has funds runs on! Sufficient loan application deadline to apply for a bank to sign off on a loan a sibling website created. 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Ho Kee Pau, Javascript Radio Button Onclick, Interion® Sit Stand Stool, Dog Joint Cyst, Sun Joe Fire Pit Kit,