Paycheck Protection Program (PPP) Update
Paycheck Protection Program Flexibility Act Signed Into Law
President Trump signed into law the Paycheck Protection Act on Friday, June 5th addressing some concerns of the Paycheck Protection Program and its procedures.
Here are the meaningful adjustments that have now been made to the program:
- Extension of time to use funds from 8 to 24 weeks for forgiveness.
- Reduces the amount of the loan needed to be spent on payroll from 75% down to 60%;
- Pushes back the previous 6/30/2020 deadline to rehire workers out to 12/31/2020;
- Eases the rehire requirements to reduced head count if (guidance to come):
- unable to rehire an individual;
- an inability to hire similarly qualified employees;
- an inability to return to the same level of business.
- Extension of repayment term from 2 to now 5 years if portions of the loan are not forgiven at the same 1% interest rate
As your trusted business advisors, we at Polk and Associates remain committed to assist you during this extraordinary time. Please reach out to us with questions you may have as we stand with you as we weather this extraordinary crisis.
Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.
Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.
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