Paycheck Protection Program Reopens
With $130 billion of funding still available, the Paycheck Protection Program reopened applications. Small businesses can apply for a forgivable loan, restarting today, from July 6 through August 8. The extension was granted on July 4.
The Paycheck Protection Program, originally enacted under the CARES Act at the end of March, did not meet the needs of many small businesses. Changes enacted in June made the program more flexible for small businesses and improved the conditions for full loan forgiveness.
Be sure to take another look at this program that helps you cover payroll and operating expenses. The loan is 100% forgivable, if you meet the conditions of the loan, or you can pay back the 1% interest loan over 5 years.
Here are some of the changes approved under the Paycheck Protection Program Flexibility Act:
- Payroll and operating expenses can cover a 24-week period, up from the original eight weeks, up to the December 31, 2020 cutoff date.
- Businesses are now able to adjust calculations for forgiveness if they are unable to fully restore their workforce due to COVID-related operating restrictions or inability to find qualified employees.
- Payroll expenditure requirements for forgiveness are down to 60% of the total loan.
- Borrowers now have five years to repay at an interest rate of 1%.
- Businesses with a PPP loan can defer payroll taxes under the new legislation.
Learn more about the program at the U.S. Small Business Administration website:
- Frequently Asked Questions
- Connect with free local assistance through the CT Small Business Development Center
- SBA.gov does have a tool to help you find a lender, but local banks and credit unions recommend beginning where you normally do business.
The Paycheck Protection Program Flexibility Act legislation is available here.
Webinars on PPP:
The Chamber hosted Navigating the Paycheck Protection Program on June 18, 11 am – 12 pm, featuring:
- Tony Joyce, EVP Senior Loan Officer, Chelsea Groton Bank
- Paul Filippetti, Partner, Hoyt, Filippetti & Malaghan, LLC
Connecticut’s Small Business Development Center will be hosting a webinar on PPP loan forgiveness on July 8, 11 am- 12 pm.