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SBA PPP Loan Forgiveness Update

Posted by Admin Posted on June 20 2020

Congress passed a bill and President Trump signed it on June 5, 2020.  Here are some highlights of the bill.

 

  1. The 8 week forgiveness period is now 24 weeks or December 31, 2020 (whichever comes first).
  2. You only have to spend 60% on payroll instead of 75%.  If you spend less than 60% some of the loan can still be forgiven.
  3. Any amounts not forgiven can be paid over 5 years (instead of 2).
  4. You have until December 31, 2020 to rehire or eliminate reductions in employment or wages (was June 30, 2020).
  5. The first payment is not due for 10 months (up from 6 months).
  6. You can delay your employer portion of social security tax (even if your PPP loan is forgiven).