Congress passed the PPP (Payroll Protection Program) Flexibility Act on June 4, 2020, which provided much needed technical fixes to the (PPP) guidelines. For example, it extends the time period in which borrowers must spend loans in order to have the debt forgiven from 8 weeks to 24 weeks, decreased the percentage of funds that are required to be spent on payroll from 75% to 60% in order for the loan to be forgiven and extended the amount of time small businesses have to pay back loans from 2 years to 5 years – if they don’t qualify for loan forgiveness.
Find an updated guide to PPP loans from the U.S. Chamber of Commerce at https://www.uschamber.com/sites/default/files/uscc_ppp_forgiveness-guide.pdf.
Despite the agreeable changes, the NACC will be advocating for another much needed adjustment. Under current regulations, the IRS will tax the forgiven proceeds on these loans. We are reaching out to our local congressional delegation asking them to take immediate action to draft legislation that will re-classify these loans to non-taxable and allow full deductibility of the expenses paid from the proceeds.
As we understand, funds are still available through PPP loans. Applications can be located at https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf. Please reach out to your financial institution to guide you through the application process.
We will continue to advocate for our businesses that have sustained major revenue losses due to the COVID-19 crisis. Please, let us know how we can support you.