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PPP Loan Recipient Resources

(as of January 8, 2021)

PPP Forgiveness Updates

 

1. The forgiveness provisions of the PPP Loan program are much less strict than when the program began.  You now have 24 weeks to spend the funds, more exceptions on the FTE rules and you only have to spend 60% of the funds on payroll.  On August 4, the SBA issued this FAQ on PPP Loan Forgiveness.  Also, see the links to the updated forgiveness applications below.

2. You have 10 months from the end of your covered period to submit your forgiveness application.  Most banks are accepting applications now.

3. Note that the Economic Aid Act of 2020 provides that borrowers whose PPP loan was less than $150,000 may not be required to submit documentation along with their certification, thereby streamlining the forgiveness process for those borrowers.

Paycheck Protection Program Flexibility Act 

Here is a link to AFC's most recent webinar with detailed updated information

The key changes are:

  

1. The covered period can be extended to 24 weeks, providing borrowers with 24 weeks to spend the PPP funds from the time they receive them (increased from 8 weeks)

2. The amount of the funds required to be spent on payroll to be forgiven is reduced to 60% (from 75%)

3. Additional exemptions from the FTE requirement to include employers who do not rehire because they are not able to open due to government restrictions.  The date of the safe harbor to restore the workforce is extended to December 31.

4. The loan term has been extended to 5 years (from 2) for borrowers who have some or all of the loan not forgiven. The interest rate is still 1%.

OMB UPDATES for Federal Grant Recipients

OMB has issued guidance that PPP Loan recipients may not report the use of PPP Loan funds for the same salaries that are reported under a federal grant.  The OMB guidance does encourage federal grant recipients to work to conserve federal grant funds by using the PPP funds and any other cost-saving measures to ensure federally-funded programs can maintain continuity. OMB has also issued guidance that the proceeds of a PPP loan that are forgiven will not be subject to Single Audit requirements.

UPDATES for EIDL Recipients as of January 2021

If you received an Economic Impact Disaster Loan advance from the SBA after receiving your PPP proceeds, your loan forgiveness amount will no longer be reduced by $10,000 and the funds from the EIDG.  If you have already applied for forgiveness and reduced the amount of the EDIL advance, you can recoup those funds from your bank.

UPDATED Links

SBA Forgiveness application (EZ-version)       SBA EZ form instructions

SBA Forgiveness application (full version)       SBA Full form instructions

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