The Senate has passed a House bill that will adjust the forgiveness guidelines for Paycheck Protection Program Loans (PPP Loans). Here are some of the key provisions that borrowers must be aware of:

• You now have the option of extending the eight-week covered period to 24 weeks or keeping the original eight-week covered period
• Borrowers must now spend 60% of their loan funds on payroll instead of 75%
• The minimum term period is now increased from two years to five years. There was no change in the 1% interest rate
• The deadline to rehire employees has been pushed back to December 31, 2020. The original deadline was June 30, 2020
• Businesses that receive PPP Loan forgiveness can now take advantage of the payroll tax deferral feature in the CARES Act
• Additional relief, including possible full forgiveness, is now available for borrowers who could not restore their workforce due to lack of qualified candidates and/or due to COVID-19 related conditions

​In light of these new changes, DGC will hold a PPP Loan forgiveness webinar where we will discuss these measures in greater detail. Look for an invitation with the date and a registration link coming soon.

DGC has a proven process that utilizes our sophisticated model and incorporates our data analytics experience and accounting expertise to maximize PPP Loan forgiveness. If you have questions, please contact a member of your DGC client service team or George Shaw, CPA at 781-937-5125 / gshaw@dgccpa.com or Kimberley Train, CPA, ABV at 781-937-5112 / ktrain@dgccpa.com.

You can also visit our coronavirus web page at dgccpa.com/coronavirus which is frequently updated with resources to help you deal with the impact of the coronavirus on you and your business. 

If you would like to get alerts and insights like this sent directly to your inbox, sign up here.