06/08/2020

What’s In The PPP Expansion?

A Quick Roundup Of What You Need To Know

After Congress passed an expansion of the Payroll Protection Program earlier this week, President Donald Trump signed it on Friday. So, what’s in there? Here’s a quick rundown:

Extended Timeline.
There’s an extension of the covered period from 8 to 24 weeks. That means you have three times a long to continue using your PPP loan to backstop your payroll (up to $100,000 per employee) and still get the loan, or at least part of it, forgiven. “Of course, limits remain,” writes Forbes contributor Anthony Nitti, who has a great roundup of the program and the expansion. “The maximum amount paid to any one employee that will be forgiven is capped at an annualized salary of $100,000; as a result, for a 24-week covered period, this limit will be reached once an employee receives $46,153 in cash compensation.”

Extended Repayment.
New PPP borrowers can take up to five years, instead of two, to repay the loan. If you already borrowed from the program, you can talk to your lender about extending the loan term to five years—but they’ll have to agree. Which they probably will.

Please select this link to read the complete article from Chief Executive.