Important Small Business Act and the CARES Act Updates
Updated: Jun 8, 2020
Click here to see the full enrolled bill.
The Senate pushed on Wednesday to pass this bill as the 8 week period deadline for the PPP loan was approaching. The expected deadline to apply for the PPP loan is still June 30th. The loan is open to small businesses that were in operation as of February 15th 2020. The bill was passed by a unanimous vote.
Some key updates made June 5th, 2020:
PPP Borrowers can now choose to extend the 8-week period to 24 weeks, but cannot extend beyond December 31st.
Payroll expenditure requirement has dropped to 60% (technical revisions to the bill to come).
New borrowers have five years to pay back the loan and interest starts as 1% as before.
Businesses borrowing PPP loan may now delay their payroll tax payments, which was previously prohibited.
New exceptions for businesses that are unable to recover their full workforce to be eligible for full loan forgiveness.
The form for loan forgiveness is available online, but may change in the near future due to the updates stated above. The application must be submitted to your lender.
Feel free to reach out to me with any questions regarding this matter. You may also fill out the “Client Information Questionnaire” as the current circumstances may have brought up new planning needs. This survey takes about 5-10 minutes to complete. Follow the below instructions:
Click link: www.taxplanningciq.com
Enter Pin: 1703
After you complete the questions, my team and I will review the results and update our files accordingly. If we find any issues or planning needs, my office will reach out to you to set up a time to discuss them.