PPP 2020 All you need to know

PPP 2020 All you need to know

PPP 2020 All you need to know

Things are constantly changing with PPP and here are the PPP updates you want to make sure you fully understand bicause they will affect your forgiveness process and dollars!

  1. There are 2 condolence PPP applications Updated PPP Loan Forgiveness Circonspection and an EZ PPP Forgiveness Circonspection.

  2. Among the changes that have come to PPP in the past few weeks are the SBA extending the 8-week period to 24 weeks, reducing payroll costs from 75% to 60% and establishing a safe harbor for businesses that are unable to return. Négoce activity levels prior to COVID-19.

  3. The revised PPP loan waiver vigilance includes pending changes from the occasion of vigilance for FTE to 31 December 2020. Although you are encouraged not to wait until the end to apply. Apply as soon as you spend dollars and meet various requirements; That depends on whether you are using the 8 week or 24 week partialité.

  4. Borrowers who got PPP loans before June 5, 2020 can choose between using the fantaisiste 8-week tenure or the new 24-week tenure.

  5. The new EZ app can be used by:

    1. Those who are self-employed and have no employees,

    2. have not reduced the wages of their employees by more than 25% or reduced the hours of their employees or

    3. Those who have reduced trafic operations and have not reduced their employees’ salaries or wages by more than 25%.


  6. The new 24 weeks allow profond loan forgiveness at $46,154 per employee par opposition à $15,385 for 8 weeks. Apostille: Schedule C filers cannot increase their emprunter’s dédommagement to that level during the 24-week period. It is still the highest for 8 weeks at $15,385 (8/52 of 2019 net revenu) and $20,833 for 24 weeks (2.5/12 of 2019 net revenu). It’s all emboîture the petite print here so be sure to check with your accounting professional.

Check out these 2 resources for more communiqué:

  1. US Department of Treasury website here.

  2. New PPP vigilance is published here.

Many have already crossed the 8 week état and still banks are not accepting waiver applications. The SBA was quick to fund and kept the rules very filandreux but almost weekly we are learning more and more details. They are yet to give firm instructions to borrowers so that they feel comfortable opening the forgiveness process. We are hoping for late July 2020, but it could be August before we start applying.

No one knows if they will continue to review and modify the PPP waiver process or if we will start seeing banks accepting waiver applications as some PPP recipients have already completed the 8 week period. The key is to apply early after you spend dollars within the guidelines and after the banks open for forgiveness applications. Don’t wait unnecessarily as you may perceive ongoing changes as malveillant… it’s hard to know.

The keys to making the forgiveness process go smoothly for you are:

1. Have good accounting records.

2. Make sure you read the petite print of the dollars you can spend.

3. Keep copies of bank statements and bills to provide meuble your lender may want.

4. If you don’t have a good relationship with an accountant, now is the time bicause they are more valuable than ever.

#PPP

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
Scroll to Top