Payroll Protection Program (PPP) Loan Forgiveness Webinar
Originally presented July 14 with Melodi Bunting, Wegner CPAs and Sarah Sneider, Conference Treasurer
This webinar, hosted online via Zoom on July 14, is available below. You can also access the original presentation slides here.
The PPP program was created to offer financial assistance to businesses and non-profits in response to the COVID effects. There have been several legislative updates and changes in the program. Join us for an interactive webinar to discuss:
What are the rules of the program after the most recent legislation which lengthened the period to use the funds and changed how they could be used?
Should your church file the Standard or EZ form?
Should you file now at the end of the 8-week period or wait until the 24 weeks are over - what are the pros/cons?
- What information do you need to have to complete the form and what can the Conference provide to you?
CARES Act Update—PPP Flexibility Act Should Help UMC Borrowers
Here are Eight Key Updates About the PPP Loan Forgiveness Program
Updated as of 7-1-20, article and video provided by Horizons Stewardship.
PPP Loan Forgiveness Update as of 6-17-20On June 17, 2020, the SBA released two new PPP loan forgiveness applications: Loan Forgiveness Application Revised June 16, 2020 and Loan Forgiveness Application Form 3508EZ. These applications replace the initial Loan Forgiveness Application. Additionally, the SBA released a new PPP Loan Forgiveness Application Instructions for Borrowers and PPP Loan Forgiveness Application Form 3508EZ Instructions for Borrowers. These applications appear to have been simplified as compared to the Initial Loan Forgiveness Application. The PPP Loan Forgiveness Application Form 3508EZ Instructions for Borrowers has a checklist to help you determine if this form is appropriate for your situation. The SBA has also indicated that it will issue further guidance to help answer questions regarding the forgiveness process.
The loan forms are being provided here to help you determine how much of your loan will be eligible for forgiveness and to allow you to accumulate supporting documentation. Our bank is recommending that we wait before taking any action on completing forms, since they are in the process of developing an online method to upload and submit required forms. Your bank may have alternative instructions. Please check with the bank that issued your loan. Our bank also commented that the SBA currently has not provided banks with the ability to submit forgiveness applications or detailed instructions on how to do so.
We will continue updating as we receive information.
The legislation on the Payroll Protection Program (PPP) continues to evolve. On June 3rd the Senate passed H.R. 7010, which, if signed by the President, would make a number of changes to the Paycheck Protection Program. If signed into law, it would:
- Lengthen the loan forgiveness period from 8 weeks to 24 weeks;
- Lower the percentage of the loan proceeds that must be used for payroll from 75% to 60%;
- Increase the loan repayment period from 2 years to 5 years;
- Provide more wiggle room for employers who don’t rehire employees because of the lingering effects of COVID to avoid a reduction in the amount of their loan that is forgiven;
- Extend the loan deferral period; and
- Allow employers with PPP loans to take full advantage of the payroll tax deferral.
Assuming H.R. 7010 becomes law, look for additional updates from the General Council on Finance and Administration (GCFA) which we will share.
If the President does not sign this into law, then we follow the current guidelines. Wespath and GCFA had prepared this information prior to the House/Senate action. "Guidance for United Methodist Borrowers on the Paycheck Protection Program Loan Forgiveness Application."