New Details on PPP Loan Forgiveness
AV CHAMBER NOTE: Last week, Congress made many favorable changes to PPP Loans and forgiveness policy. This attachment is very easy to follow and clear on everyone from employers to independent contractors. We hope this helps.
NEW Details on PPP Loan FORGIVENESS:
- Extending the time to spend PPP funds from 8 weeks to 24 weeks;
- Lowering the amount that must be spent on payroll from 75% to 60%;
- Extending the deadline to restore FTEs and payroll from June 30, 2020 to Dec. 31, 2020; and
- Setting the repayment term for loans made after June 4, 2020 at five years.
PPP borrowers must apply for loan forgiveness with the lender that processed the loan. The guide linked below is designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.