On June, 16, 2020, the SBA provided updated guidance and PPP Loan Forgiveness Application forms, including a new EZ version of the forgiveness application.
On June 5, 2020, the President signed the Paycheck Protection Program (PPP) Flexibility Act into law. Below are a few of the important highlights.
PPP Flexibility Act Highlights:
- Covered period extended until December 31, 2020, and gives employers 24 weeks, rather than 8 weeks (or December 31 if earlier) to spend PPP proceeds
- Payroll costs decrease from 75% to 60% with non-payroll portion of a forgivable covered loan amount raised from 25% to 40%
- Loan terms for any unforgiven portions to be repaid extended from 2 years to 5 years at 1% interest
- Loan forgiveness period extended from 6 months to within 10 months
- Period extended in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan
On May 29, 2020, InBank hosted a webinar ‘Managing Your PPP Loan’ covering PPP loan forgiveness, documentation and more. The webinar included a panel of InBank experts and was moderated by Bo Anderson of SBBO.
For additional PPP loan forgiveness questions, please contact:
Molly Kufeldt, SVP, Senior Commercial Banker: Molly.Kufeldt@inbank.com
Tom Francis, SVP, SBA & Commercial Banker: Tom.Francis@inbank.com
Viki Bunting, SBA Loan Assistant: Viki.Bunting@inbank.com
Bo Anderson, Attorney at Law, SBBO: BAnderson@sbbolaw.com
U.S. Department of Treasury: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
InBank is a Member FDIC and Equal Housing Lender.