PPP Loan Updates
Confused by numerous PPP debt and forgiveness updates? You are not alone. To make it even easier, we make sure that all PPP loan content has been updated to contain the latest rules / requirements. As a simple reference, we have compiled the following timeline with milestone updates for 2020 and 2021.
July, 2021
Although the SBA has removed the requirement of a "Required Question Paper" (Form 3509/3510) in July 2021, the SBA will continue to assess the required eligibility based on the economic uncertainty when submitting a PPP loan application.
On February 22, President Biden Pechek announced a series of changes to the Security Program (PPP). The changes are meant to help small businesses and take effect almost immediately
PPP Loan 2020 (Archive)
The Consolidated Appropriations Act (CAA) is signed by President Trump. This abolished the previous position of the IRS and now allows businesses to deduct eligible costs included in the PPP waiver.
As of October 30, word has emerged that the SBA has developed new forms 3509 and 3510 to help businesses and nonprofits explain their loan costs, the former being used by borrowers for profit and the latter by nonprofits who hold aggregate PPP debt of at least 2 million.
With another stimulus stalemate announced by Congress, the prospect of significant changes or enhancements to the Paycheck Protection Program (PPP) looks bleak, at least after the election when both houses reconcile. This leads to confusion among borrowers and lenders about the effects of forgiveness and taxes.
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The SBA and the Treasury Department have issued new guidelines and applications for PPP debt waiver Fortunately, they have cleared up some of the big questions for people, including the maximum total compensation if they choose 24 weeks, the date of safe harbor recovery, and the provision to choose a covered period between 8 and 24 weeks. Another important change is the introduction of an EZ form that will be used by borrowers who meet the criteria.
Borrowers who have exhausted their full PPP funds do not have to wait until 24 weeks have elapsed to submit their waiver application. Those who are in this position may very well want to repay the loan if they need additional bank financing, and / or may be forgiven before changing the rules again.
In a swift move Wednesday, the Senate unanimously approved a bill passed by the House of Representatives last week that significantly amended the Paycheck Protection Program (PPP) rules. Through these activities, the bill paves the way for the President's desk to sign the law, which is widely expected.
The House passed the Paycheck Protection Program (PPP) Flexibility Act (H.R. 7010) in an overwhelming bipartisan vote - the first step towards becoming law. The bill includes several key changes to the PPP, including extending the loan repayment period from 2 to 5 years, extending the covered period to 24 weeks or 31 December, 2020 (meaning any loan financed between July 17, 2020), and a percentage correction. Non-pay-off expenses incurred and allowance of salary tax suspension with debt waiver.
The much awaited PPP loan waiver application and instructions are available on May 15, 2020. This application provides both the forms to the borrowers on the basis of which they have to submit the loan waiver application to the lender, as well as the much needed guidelines in this form. Attached instructions.
On Friday, April 24, 2020, President Trump signed into law an additional $ 310 billion in funding for the Paycheck Protection Program (PPP), of which $ 60 billion is reserved for community banks and small lenders; $ 75 billion for hospitals; $ 25 billion to support testing efforts; And $ 60 billion for emergency disaster loans and grants. There are concerns that access to forgivable loans is not limited to those who really need it, for which the Treasury has issued certain conditions that should be noted.
The SBA announced this morning that it was no longer accepting applications for the Paycheck Protection Program (PPP) Loan or the Economic Injury Disaster Loan (EIDLs), due to the funding limit being reached. They suggested that any EIDL loan applications already received would be processed on a first-come, first-served basis.