Eased PPP Loan Rules: 6 Things To Know
Here are six ways the law attempts to make using PPP loans easier:
You now have 24 weeks to spend your funds, up from eight weeks.
You need to spend 60% of the loan on payroll, down from 75%.
The covered period of the loan now ends Dec. 31 instead of June 30.
You won’t have to make employer payroll tax payments through the end of 2020.
Your business will not lose any loan forgiveness eligibility if you can show that some employees declined to return to their jobs or the pre-pandemic headcount is no longer required.
The payback period for new loan applicants has been extended from two years to a minimum of five for those not seeking or who are ineligible for forgiveness.
You can find the PPP Loan Forgivness application here.