Information received from the U.S. Chamber of Commerce

The U.S. Chamber of Commerce has prepared an update Guide to PPP Loan Forgiveness. This guide reviews recent changes made by Congress and the administration to the PPP program to provide borrowers with more flexibility. These changes include:

• Extending the time to spend PPP funds from 8 weeks to 24 weeks;
• Lowering the amount that must be spent on payroll from 75% to 60%;
• Extending the deadline to restore FTEs and payroll from June 30, 2020 to Dec. 31, 2020; and
• Setting the repayment term for loans made after June 4, 2020 at five years.

The updated Guide to PPP Loan Forgiveness supplied by the U.S. Chamber reflects all of these changes, as well as others made recently by the Department of the Treasury. It is designed to help businesses better understand the forgiveness application process. Please note that this guide reflects all of the most recent changes as of June 15, 2020, but it is possible that further changes could be made.

Under the Paycheck Protection Program (PPP) created by the CARES Act, loans may be forgiven if borrowers use the proceeds to maintain their payrolls and pay other specified expenses.

Congress recently changed the rules regarding loan forgiveness. The Treasury Department and Small Business Administration are responsible for updating the application form and instructions for loan forgiveness. You can find the most up-to-date information here.

PPP borrowers must apply for loan forgiveness with the lender that processed the loan.

This guide is designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.

See the full guide HERE.