Early June saw some fast-moving changes to the Pay Check Protection Program Flexibility Act.
If are looking for a brief rundown of what the Paycheck Protection Program Flexibility Act means to you, you are in luck. There are a few things you need to know. Read on:
The Paycheck Protection Program is a $669 billion program aimed at helping struggling small businesses. It passed in March 2020, but some issues were raised.
In early June, lawmakers passed the flexibility act to address those issues and President Donald Trump signed it into law on June 5, 2020.
So, what are some of the changes?
Namely, the flexibility act lets businesses that received loans use less funds for payroll costs to get the loans forgiven. Initially, businesses had to use 75% of the loan for payroll; now it’s 60%. In addition, if a business can’t return to the same level of business, they might still be eligible for loan forgiveness and there are provisions for businesses who can’t fill vacant positions by Dec. 31, 2020.
Businesses also have more time to use the loan, increasing the time from eight weeks to 24 weeks.
The deadline to apply for Pay Check Protection Program Flexibility Act funds is still June 30, so if you think you are eligible, don’t wait!
The Pay Check Protection Program Flexibility Act is a part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, legislation that was passed in response to the coronavirus (COVID-19) pandemic, that sparked economic woes.
We will continue to keep tabs on these fast-moving changes, legislation and issues – and how they affect small business owners! — as they come up. Stay tuned!
For more small business tips and ideas, follow us on LinkedIn and Facebook!
If you have other questions, email us or call 937.308.0758.
Recent Comments