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Please note that this blog is based on laws effective on June 5, 2020 and may not contain later amendments. Please contact Cray Kaiser for most recent information.
Congress has continued to legislate for the small business community, specifically targeting the Paycheck Protection Program (PPP) loans. On June 3, 2020, the Senate approved House Bill 7010 which is commonly referred to as the Paycheck Protection Program Flexibility Act of 2020. This bill provides some flexibility to small businesses in complying with the terms of the PPP loan. A few key features of this bill are summarized below.
Exemptions Based on Employee Availability
During the period of February 15, 2020 through December 31, 2020 a borrower may exempt a reduction in the full-time equivalent calculation if the borrower is able to document one of the following:
There was an added provision requiring a borrower failing to apply for loan forgiveness within 10 months after the last day of the covered period to make payments of principal, interest and fees beginning on this date.
The bill is awaiting final approval by President Trump. Soon after his approval, formal guidance will become available. As further information develops, we will update our blog accordingly. Until then, please don’t hesitate to contact Cray Kaiser with any questions regarding the Paycheck Protection Program Flexibility Act of 2020.
These are certainly trying times and we want to reiterate that Cray Kaiser is here for you. As things continue to evolve in light of the COVID-19 pandemic, we at CK are taking additional precautions for the benefit of our team members and our clients.
We want to remind our clients of our portal access and your ability to safely and securely share your information with our team. We ask that you email firstname.lastname@example.org to request your portal access. This will eliminate the need for you to drop off your tax information at our office.
Thank you for your patience and understanding during this challenging time. We wish you, your family, and your business health and safety. We will continue to support you as best as we can while keeping each other’s health a priority. If any changes occur during the course of the next few days, we will update our website.