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 6-17-20
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."