New Forgiveness Rules
How did Congress change PPP Loan Forgiveness rules on June 5?
On June 5, 20202, the President has signed new legislation that will give borrowers in the PPP program more flexibility in using and repaying the allocated funds. Changes include
- Giving borrowers the option to extend the “covered period” for loan forgiveness from 8 weeks to 24 weeks.
- Lowering the minimum loan amount required to be spent on payroll from 75% to 60%
- Extending the repayment period from 2 years to 5 years.
- Extending the June 30, 2020 “safe harbor” deadline for companies to rehire employees to December 31, 2020.
Once official guidelines are released, SBA.com® will update our content accordingly.