June 4, 2020

Last night the Senate passed the House version of the Paycheck Protection Flexibility Act, and the President is expected to sign it. Read more about it here, but these are the high points. 

  • Current PPP borrowers can extend the 8-week payment period to 24 weeks. 
  • The payroll expenditure requirement drops from 75% to 60%, but there may be a hitch regarding this one – stay tuned. 
  • Borrowers can use the 24-week period to restore wage and employee count levels, and the deadline has been extended from June 30 to December 31. 
  • New exceptions for restoring workforce if a borrower cannot restore levels because they can’t find qualified employees, or if they are unable to restore operations to February 15, 2020 levels due to COVID-19 related operating restrictions. 
  • Borrowers have five years to repay the unforgiven portion of the loan – up from two, and the interest rate stays at 1%. 
  • Those who receive a PPP loan can now delay payment of payroll taxes to December 31, 2020 and December 31, 2021. 

This is great news for borrowers who have already received PPP loans and for those contemplating them. If you have any questions regarding PPP loans, cash flow projections to help you through the storm, or other financial concerns you have during this time, please call on us. We are here to provide you financial peace of mind. 

theKFORDgroup team is ready to assist you with your tax questions.  Give us a call at (210)340-8351.

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