PPP, SquarMilner -

Congress Gives Small Businesses Greater Flexibility In Using PPP Funds

  • The option for current PPP borrowers to extend the eight-week period to 24 weeks
  • The payroll expenditure requirement drops to 60% (from 75%), meaning that the limit on the amount of loan forgiveness that can be attributable to nonpayroll expenditures (mortgage interest, rent, and utilities) increases to 40% (up from 25%).
  • The bill extends the full-time equivalent employee (FTEE) and salary/hourly wage safe harbors from June 30, 2020, to December 31, 2020.
  • New borrowers now have five years to repay the loan instead of two. Existing PPP loans can be extended up to 5 years if the lender and borrower agree. The interest rate remains at 1%.

Full details at SquarMilner.com