By Alan Wolf, YSN
The federal government has revised some of the more onerous stipulations of the Paycheck Protection Program (PPP), and has provided new application forms for the loans, which remain available through June 30.
Chief among the changes are an easing of the requirements for loan forgiveness. These include:
- Extending the loan’s spending period from eight to 24 weeks;
- Reducing the amount that must be spent on payroll from 75 percent to 60 percent of the loan.
The updated PPP rules also extend the repayment period for new loans from two to five years at the same 1 percent rate, and allows borrowers to delay payment of payroll taxes, which had originally been prohibited under the CARES Act.
In addition, the Small Business Administration (SBA) is now accepting new applications for Economic Injury Disaster Loan (EIDL) advances of up to $10,000, which do not have to be repaid. Information and applications are available here and on the COVID Info Hub.