PPP Application Deadline Extended to August 8

PPP Application Deadline Extended to August 8

Last night the Senate voted to extend the application deadline for the PPP loans to August 8. This is great news for small businesses; it gives additional time to evaluate your needs.

Remember there have been some changes to the Program with the June 5th passing of the Paycheck Protection Program Flexibility Act . Here are the highlights of the changes:

Extends the covered period for forgiveness from 8 weeks after the date of loan disbursement to 24 weeks after the date of disbursement.
- Borrowers who have already received PPP loans retain the 8 week option.

Lowers the amount payroll costs required for loan forgiveness from 75% to 60%.

Provides a safe harbor from reductions in loan forgiveness when business is unable to maintain full-time equivalent employees due to a reduction in business activity when:
- Business activity has been reduced because of compliance with guidance issued between March 1 and December 31 2020
- Guidance is related to worker or customer safety requirements relating to COVID-19
- AND guidance has been issued by the Secretary of HHS, the Director of the CDC, or OSHA

Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to:
- Rehire individuals who were employees of the borrower on February 15, 2020
- AND unable to hire similarly qualified employees for unfilled positions by December 31, 2020

Increases the maturity to 5 years for loans approved on or after June 5, 2020

Extends the deferral period to the date SBA remits the borrower's loan amount to the lender

Small Business Assistance

Don't forget that SBDC counselors are available and eager to assist your small business navigate the Covid-19 crisis. Some areas we can help are:

We are:

Mark Lankford - This email address is being protected from spambots. You need JavaScript enabled to view it.
LeKeisha Grant - This email address is being protected from spambots. You need JavaScript enabled to view it.
Kathy Markshlek (exports) - This email address is being protected from spambots. You need JavaScript enabled to view it.
Kim Woodbury - This email address is being protected from spambots. You need JavaScript enabled to view it.
Cindi Green - This email address is being protected from spambots. You need JavaScript enabled to view it.