|The deadline to apply for a Paycheck Protection Program loan has passed. We are no longer accepting applications.|
What Does the Paycheck Protection Program in the new CARES Stimulus Bill Mean for Your Small Business?
Round 2 of The Paycheck Protection Program (“PPP”) authorizes up to $310 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The Paycheck Protection Program Flexibility Act was signed into law on Friday June 7, 2020. The Act extended the covered period for loan forgiveness from 8 weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
PPP Loan Forgiveness Guidance from SBA:
The SBA has issued guidance allowing borrowers to claim forgiveness of their Paycheck Protection Program (PPP) loans. The SBA’s Loan Forgiveness Application provides detailed instructions for borrowers and the calculation of the PPP loan forgiveness.Current guidance can be found HERE. This guidance is subject to change based on future SBA guidance.
Under the current guidance, a borrower may request the forgiveness of PPP loan proceeds by filing SBA Form 3508, Paycheck Protection Program Loan Forgiveness Application. The application has four components:
(1) the PPP Loan Forgiveness Calculation Form;
(2) PPP Schedule A;
(3) the PPP Schedule A Worksheet; and
(4) an (optional) PPP Borrower Demographic Information Form.
On June 16, 2020, the Small Business Administration (SBA), in consultation with the U.S. Treasury Department, released the Paycheck Protection Program (PPP) EZ Loan Forgiveness Application. The criteria for utilizing the EZ form are disclosed below (*). Although both the original (SBA Form 3508) and EZ loan forgiveness applications are available to borrowers, we anticipate additional guidance on the forgiveness process to be released in the coming weeks. At this time, we recommend discussing your forgiveness options with a financial adviser to gain insight into which avenue is best for your current situation.
More Details found HERE. This guidance is subject to change based on future SBA guidance.
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* According to the PPP Loan Forgiveness Application Form 3508EZ instructions, a borrower may use the streamlined form if it meets one of three criteria: (i) the borrower is self-employed, an independent contractor, or sole proprietor with no employees at the time of application; (ii) the borrower did not reduce salary or wages of any employee by more than 25 percent during the covered period and did not reduce the number of employees or the average paid hours of employees; or (iii) did not reduce salary or wages of any employee by more than 25 percent during the covered period and was unable to operate during the covered period at the same business activity level as prior to February 15, 2020, due to compliance with certain government requirements.