The Paycheck Protection Program expires soon
Time is quickly running out for small business owners to apply for the Paycheck Protection Program (PPP) with local SBA Lenders. We want to be sure you take advantage of the remaining $125Bn available to support Small Businesses, and I recommend your application be submitted to the lender of your choice by June 20 to allow plenty of time for approval by June 30.
And as of June 5, 2020, new applicants have more flexibility under the recently approved PPP-Flexibility Act (PPPFA). As we receive the new rules and guidance on this update we will share through district webinars on how these modifications will support important changes, such as:
- Extends the maturity for loans made on or after June 5, 2020, from two years to five years.
- Extends the covered period from June 30, 2020, to December 31, 2020, for the forgiveness of PPP loans.
- Extends the covered period for the use of loan proceeds from eight weeks to 24 weeks.
- Provides a safe harbor for small businesses from the rehire requirements if the business owner can document their inability to hire employees for unfilled positions by December 31, 2020, or their inability to return to the same level of business activity because of federal COVID requirements pertaining to social distancing, sanitation, and worker safety.
- Allows borrowers to use 60 percent of the loan amount for payroll costs and up to 40 percent for debt obligations, including interest on a mortgage, rent payment, or utility payment.
- Extends the deferment period for loans retroactively until the amount of forgiveness is remitted to the borrower by the lender (the deferment period ends for all borrowers 10 months after the end of the covered period).
- Delays the payment of employer payroll taxes until January 1, 2021, for PPP borrowers.
For additional resources and a list of lenders participating in the Paycheck Protection Program,
PPP Loan Forgiveness
The SBA Houston District Office will walk you through the latest issued official guidance.
Wednesday 06/17: CLICK HERE
Friday 06/19: CLICK HERE