Big changes to the Paycheck Protection Program

  • Sun Jun 14th, 2020 1:30am
  • News

Submitted by San Juan County Economic Development Council.

Businesses should take a second look at the Paycheck Protection Program in light of substantial revisions signed into law on Friday, June 5. The Paycheck Protection Program Flexibility Act makes several major changes to the PPP. These changes may make the program more attractive to businesses that had decided against using it and more useful to those businesses that had already received it.

Key points include:

• Businesses can spend more (up to 40 percent of the loan) on non-payroll expenses and still get it forgiven.

• Businesses get much more time (24 weeks, ending prior to Dec. 31, 2020) to spend the loan.

• Businesses can wait longer (up to December 2020) to rehire workers.

• Some flexibility to the rehiring requirements for businesses meeting certain conditions.

• Extension in repayment period (to 5 years).

• Businesses should review guidelines as they may change.

Call the Economic Development Council at 360-378-2906 for free business counseling.