New More Favorable Rules for PPP Loan Forgiveness
Atlanta’s curfew continues through Sunday, June 5, 2020 from 8:00 pm to sunrise. According to the city, there are no restrictions on vehicular travel in the city and businesses do not have to close at 8:00 pm this weekend. The curfew only prohibits patrons from remaining on streets and sidewalks within the city.
There is good news for PPP loan recipients. The favorable changes to the PPP loan forgiveness rules I described in my email of May 28, 2020 (shown below) were signed into law today! The new law offers the following benefits to PPP loan recipients seeking loan forgiveness:
The amount of the loan that must be used for payroll is reduced from 75% to 60%
The June 30th deadline to rehire workers is now extended until December 31, 2020
The time to use loan funds is extended from 8 to 24 weeks
The repayment term for any unforgiven portion of the loan is extended from 2 to 5 years
The first loan repayment is deferred for six month’s after the SBA makes its determination regarding your loan forgiveness.
Best regards for a safe weekend, Michael Habif