This act was unanimously passed by the Senate and is now set to be signed by the President.
This act changes the loan forgiveness provisions of the PPP through the following amendments:
- The “covered period” will be extended to 24 weeks from 8 weeks.
- There will be no forgiveness reduction due to FTE’s if the employer is able to document an:
- Inability to rehire individuals who were employees at February 15, 2020.
- Inability to hire similarly qualified employees for unfilled positions before December 31, 2020.
- Inability to return to the same level of business activity as before February 15, 2020 due to compliance requirements or guidance issued by the HHS, CDC, or OSHA related to COVID-19.
- The payroll percentage expenditure requirement will be reduced to 60% from 75%. However, if the 60% payroll expenditure requirement is not met, none of loan will be forgiven.
- The deferral of paying back the non-forgiven portion of the loan will be extended to 1 year from 6 months. If forgiveness is not applied for, then this deferral is only 10 months.
- Deferral of payroll taxes may be taken simultaneously with loan forgiveness.
If you have any questions, please contact your Kerkering Barberio team member at (941) 365-4617 or visit our website at https://www.kbgrp.com/resources/covid-19-updates.