Several provisions of the Paycheck Protection Program have been modified, and the most recent legislation gives small businesses more flexibility on qualifying for loan forgiveness. Key provisions of the changes include:
- Lowering the threshold for the amount of PPP funds required to be spent on payroll costs from 75 percent to 60 percent.
- Borrowers must spend at least 60 percent on payroll or none of the loan will be forgiven.
- Borrowers may choose to extend the eight-week period to 24 weeks if they need the added time to restore their workforce levels and wages to pre-pandemic levels required for full forgiveness.
- The restoration must be done by December 31 (rather than the previous deadline of June 30).
- There are two new exceptions for achieving full forgiveness, even if borrowers do not fully restore their workforce, if employers (a) cannot find qualified employees or (b) are unable to restore operations to February 15 levels due to COVID-19 operating restrictions.
- Extending the time period to repay the loan to five years from two.
Please do not hesitate to contact us if you have any questions about PPP or the forgiveness rules.
Fournier Legal Services has been a customer-service oriented, technology-based, paperless law firm from the day we opened, and we are uniquely positioned to help our clients navigate the current environment. For any questions related to Business Law or Estate Planning, please contact us by calling 860.670.3535 or emailing firstname.lastname@example.org.
Joseph E. Fournier is an Attorney and a CPA who has more than twenty years of experience in a variety of business legal matters, including start-ups and company formations, drafting shareholder and operating agreements, contracts, employment law, commercial litigation, tax planning and audit defense, and mergers and acquisitions (M&A). He also handles estate planning matters, such as business succession planning, wills, trusts, and probate.