The recently passed Paycheck Protection Program (PPP) Flexibility Act of 2020 amends the Coronavirus Aid, Relief, and Economic Security (CARES) Act and eases rules on how and when small businesses can use loans and still be eligible for forgiveness. With the program’s principal purpose being to help employers retain their employees on the payroll, these loans are designed to now cover payroll and related expenses paid or incurred during the 24-week period (recently updated from an eight-week period) that follows the date the loan proceeds are received, or from that date through Dec. 31, 2020, whichever is shorter.
As a result, on June 17, the Small Business Administration (SBA) released two new versions of the application borrowers of a PPP loan must use to determine the amount of the loan that may be “forgiven” by their lender. There is a modified version of the full loan forgiveness application and a new, shorter “EZ” form that can be used by some borrowers.
Still have questions on PPP loans or need help with forgiveness calculations? Connect with us for assistance.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.