July 8, 2020: PPP Program Extended, Still Accepting Loan Applications
The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline for SBA to approve a PPP loan is August 8, 2020. You should consult with your local lender as to whether it is participating in the program. As of June 30, the $131.9 billion still remained in the PPP account. View a list of lenders participating in the Paycheck Protection Program by state. The extension allows lawmakers on Capitol Hill additional time to negotiate next steps in how to support businesses who continue to struggle under COVID-19.
June 19, 2020: The Franklin Partnership has shared an update on the SBA PPP Forgiveness 3508 Application, including details, relevant forms and deadlines. Of note - businesses are reminded that the SBA may NOT approve any loans after June 30, 2020, therefore, if a company has yet to apply for a PPP loan but intends to do so, it is recommended that all companies fill out the loan application with their lender no later than June 23.
To read the full update from The Franklin Partnership, click here.
June 4, 2020: The Senate has passed the previously approved House version of the Paycheck Protection Flexibility Act. To read this memo from Benesch (shared on June 4, 2020), click here. To see additional details shared by the team at Mueller Prost, click here.
The SBA has added financial relief for qualifying businesses under their disaster relief program. There are many unknowns, but below are several documents and links that provide additional detail.
A message from The Franklin Partnership
On May 15, 2020, the Small Business Administration (SBA) released the Paycheck Protection Program (PPP) loan forgiveness application form.
While it provides quite a bit more clarity for borrowers, many questions remain that Treasury and SBA will hopefully clarify in a pending Interim Final Rule and further guidance. More information is needed on the safe harbor for employers who had employees not return who were offered employment; how strict they will be on large bonuses that go towards payroll thresholds; on utilities what defines transportation and are cell phones included; and a few other questions.
Most significant is they kept the 75% on payroll costs but allow the 8 weeks to align with a payroll period.
A few notable items in the Application:
Update on PPP Legislation (published June 12, 2020): Senate Passes Paycheck Protection Flexibility Act