Forgiveness of the Paycheck Protection Program (PPP) loan just got a lot easier for small business owners (less than 500 employees) who received funds from the federal government to help keep their business afloat and their employees on payroll during the mandated “stay-at-home” order and the phased reopening of businesses.
Congress passed and President Trump has signed the Paycheck Protection Flexibility Act which adds additional time to use PPP funds, reduces the percentage that must be spent on direct payroll costs, provides a “safe harbor” for reduction in staff and allows the deferral of payroll taxes. With these changes, almost every business that received PPP funds should be able to qualify for loan forgiveness but, if they don’t, the period for repayment has also been extended.
Remember, it is critical to document how PPP funds are expended so that you can apply for loan forgiveness. It is also important to document rehire offers to qualify for the “safe harbor” provision if you have fewer employees when you apply for loan forgiveness.
PPP funds are still available to qualified businesses. Contact your banking institution for more information about the application process. If you applied previously but were not approved, you may want to consider applying again through a community-based banking institution.
An HR professional can help you with all of your human resources needs. From hiring the right employees, running background checks, creating employee handbooks that include anti-harassment policies and procedures, and so much more, Next Level Solutions can work with you to provide the services that you need to run your business.