Extension for spending Paycheck Protection Program money
Reform Bill passes 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
- Lowers to 60% from 75% the portion borrowers must spend on payroll (including salary, health insurance, leave and severance pay) to qualify for loan forgiveness and the remaining 40% can go toward operating costs like rent and utilities
- Non-forgiven loan amounts repayment terms more than doubles from two years to five years at 1 percent interest
- Allows companies whose loans are forgiven to delay payment of payroll taxes
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