Senate and administration also back an extension for spending Paycheck Protection Program money
The U.S. House approved legislation Thursday making it easier for recipients of Paycheck Protection Program (PPP) funding to qualify for forgiveness of the loans.
- Extends from eight weeks to 24 weeks the time to spend funds. Senate may only double spending period to 16 weeks
- Lowers to 60% from 75% the portion borrowers must spend on payroll to qualify for loan forgiveness. Senate may not change the 75% requirement
- House legislation more than doubles the non-forgiven funds from two years to five years
- Allows companies whose loans are forgiven to delay payment of payroll taxes
It’s likely the Senate and House will agree to something very soon and President Trump will sign the legislation. Make sure your CPA and office manager are keeping up with this for you too!
If you still haven’t applied for a PPP loan for your practice, there are still funds available but you really need to act now!
Call you banker and/or go to the SBA website to get this started: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program