Just as many were getting ready to submit Loan Forgiveness Applications both Chambers of Congress have now passed the Flexibility Act significantly changing provisions employers must follow to be eligible for Forgiveness. We are closely following the changes as this new act has now been sent to the President.
To give you the Reader’s Digest version the act is designed to give you more flexibility. Key points are:
- Spend 60% (rather than 75%) of PPP funds on payroll costs.
- 40% (rather than 25%) of PPP funds can be spent on mortgage interest, rent, and utilities.
- 24 weeks – instead of 8 weeks – to spend the loan proceeds.
- Extend the deadline to rehire certain laid-off workers to Dec 31st.
At this time, most banks are NOT accepting PPP forgiveness applications because of the unknown. However, we suggest confirming this with your bank. Once we receive more guidance from the SBA we will modify the reports we’ve built for you pulling the payroll information you’ll need for your applications.
We are here to help you navigate through these unfamiliar waters. Thank you for giving us the privilege of working with you and your business.