Paycheck Protection Program funding still remains for U.S. businesses hurt by COVID-19. Our new webinar examines the latest details on loan forgiveness behind this crucial federal program.
If your business is among the many to receive funding through the Paycheck Protection Program (PPP) in recent weeks, you may ask yourself, “What are my options if I need forgiveness on my PPP loan?”
The Paycheck Protection Program Flexibility Act, signed by President Donald Trump on June 5, gives PPP borrowers more freedom in how they can spend their loan proceeds while also retaining the possibility of full loan forgiveness.
To learn more about these changes to the PPP program, please watch our June 18 webinar presentation by banking and finance legal expert Michael Royle, who provides an overview of what you need to know to make sure your PPP loan is forgiven. Following the presentation is an interactive Q&A led by Royle and Chris Atkins, SVP of Capital Finance for C2FO.
Key takeaways from the webinar:
- PPP proceeds can only be used for payroll, mortgage interest costs, rent payments and utility payments.
- The covered period for spending loan proceeds has been extended from eight to 24 weeks.
- The amount of PPP money that must be spent on payroll costs has been reduced from 75% to 60%.
- Employer payroll taxes have been deferred.
- The deadline for new loan applications is June 30th.
To ensure eligibility for PPP loan forgiveness, companies must show exactly how they spent their PPP money and also document their number of full-time employees during the eight-week or 24-week covered period in 2020 compared to their full-time headcount in 2019.
“Everybody assumes they’re going to get 100% (forgiveness). I hope you get 100%, but you’re going to have to carefully document exactly what you spent the PPP proceeds on,” Royle says.
This is the second webinar hosted by C2FO about PPP options for companies affected by the pandemic. The first webinar in April, “Understanding the Paycheck Protection Program and the Impact on Your Small Business,” provides an introduction to PPP, as well as insights on how to leverage a PPP loan for your business.
The content of these webinars are for informational purposes. To learn if a PPP loan is right for your business, we recommend that you consult a financial expert.
Learn more about PPP
For more information, our partners at BlueVine and their support team are available to answer your questions or assist with a PPP loan application at (650) 480-3830 or https://www.bluevine.com/c2fo-ppp.
More resources on loan forgiveness
The following resources provide more information and insights about PPP loan forgiveness: