PPP Forgiveness Update | CARES Act 2020

by Lynnea Bylund on June 5, 2020

NEW PPP bill passed in the House was just passed by the Senate!

Changes | New bill:

Increases the time frame to use PPP from 8 weeks to 24 weeks (optional).

Now requires at least 60% of the loan to be used on payroll to be forgiven.

Extends “safe harbor” date to hire back employees from June 30 to Dec 31.

We will need more interpretive guidance to come out from the Treasury as certain issues have not yet been clarified (such as whether the limits on owner pay still exist, and period uses for the FTE and salary/hourly reduction calculations).

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