Yesterday (6/3/2020), the Senate approved the House bill that extends the Paycheck Protection Program (PPP) funds usage timeline from 8 weeks to 24 weeks, decreases the required usage for payroll purposes from 75% to 60% and extends the loan repayment terms from 2 to 5 years for any portion of the loan not forgiven, among other changes. This is great news for many businesses that have been operating with reduced payroll as a result of COVID-19. If you have any questions on how this may affect your current or potential PPP loan, please contact us.
For further information, go to Journal of Accountancy's article on PPP forgiveness changes coming as Senate passes House bill