On Wednesday, the House passed a measure to extend the Paycheck Protection Program application deadline to Aug. 8. PPP FAQs - Loan Eligibility and Application Requirements. Depending on your circumstances, you’ll either use Form 3508S, Form 3508EZ, or Form 3508. The “EDIL Advance Program” is closed. The PPP Flexibility Act of 2020 extends the time companies have to spend loan funds and still qualify for forgiveness. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Clarification was also released around the PPP loan forgiveness application deadline: you can breathe a sigh of relief because loans are not due on October 31, 2020 as many feared. The Paycheck Protection Program (PPP) is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow. 3 of the PPP Loan Forgiveness FAQs. Or search online for one of the many webinars or how-to articles presented by law firms, accounting firms, and others. If a small business has reopened and generated revenue, can it still meet the qualifications for a PPP loan? All Rights Reserved, This is a BETA experience. Will this change also when there’s the new PPP? Email this Article. It is estimated that there is still $140 Billion available for small businesses in the PPP … The law’s adoption is far from certain, but it does at least set the minimum provisions around the negotiations in Congress for a second PPP. They’d also be able to use their funds for updated ventilation. Most of you are approaching the end of your 24-week covered period and starting to think about applying for PPP loan forgiveness. This is the first time it appears the SBA has directly provided a specific deadline for applying for forgiveness, allowing borrowers to apply up until the maturity date of their PPP loan. The following is our view on how to proceed, more details toward bottom if you are selling your practice. Then hope PPP 2 comes along in case you need it as well. Applications for loan forgiveness will be processed by your lender. “The SBA is focused on assisting eligible borrowers in underserved and disadvantaged communities and connecting them with forgivable PPP loans, especially before the … 8. Almost $130 billion in PPP funds remain available, even for businesses that have reopened. PPP Loan Deadline Extended to August 8 The previous deadline of June 30 came and went but there was still more than $130 billion available to businesses in the US. At Bank of America, the Paycheck Protection Pro… What’s the attitude of local small companies to the PPP? First, your question assumes that our leaders in Washington DC will agree to something! We’re at almost 50 FAQs on the PPP from the US Small Business Administration (SBA). The program officially runs out on June 30, 2020. 3. 12. The Flexibility Act made several key changes in the program. The SBA’s processes should prevent approval of more than one loan. All that said, the PPP has been a lifesaver for many of our businesses through the spring and summer. Yes, 501(c)(3) nonprofits are eligible, following the same rules. The Next Phase Of Brexit- VAT And Customs Duty Considerations, Breaking Down The Changes To The Employee Retention Tax Credit In The New COVID Relief Bill, Part 2, Year-End Collection: Tax Oddities Of 2020, Continuing Small Business Recovery and Paycheck Protection Program Act, Paycheck Protection Program Flexibility Act, Extend from 8 to 24 weeks the amount of time you can use the funds while remaining eligible for loan forgiveness, Extend from 2 to 5 years the time new PPP loans must be paid back if the amount provided doesn’t convert into a grant (i.e. An SBA official here in New England said there was still $130 billion left in the fund as of July 31. With the resources on these websites and my other writing and speaking, I try to help you get more value out of these compensation plans and prevent mistakes. Purpose. I’ve heard that after you get the loan funds, the application for loan forgiveness is much longer and more challenging. © Copyright 2003 - 2020, Small Business Trends LLC. [See a section-by-section summary of the Senate version.]. PPP Loan Deadline is June 30 – Still Time to Apply. Yes, as long as you carefully follow the guidelines and spending restrictions. That gives an indication of how often the feds have had to update their guidance. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. Borrowers can apply for forgiveness anytime before the loan matures (this is either two or five years from when the loan was disbursed, depending on your specific agreement). Even if you applied at one lender, you can apply at others if your lender is taking a long time. The new PPP round, laid out in detail here, would provide loans of up to $2 million for the hardest-hit businesses, those that saw at least a 25% revenue drop in a … By Office of Capital Access. For businesses with lower staffing levels than pre-Covid, you are best waiting until January 2021 to apply for PPP loan forgiveness. Many of you have been asking when you should apply for PPP loan forgiveness. Or find a lender near you through the SBA website’s map locator. But don’t wait until the last minute.eval(ez_write_tag([[300,250],'smallbiztrends_com-medrectangle-3','ezslot_5',149,'0','0'])); Apply as soon as possible. Is October … Do I need to rehire all of my employees to make the loan forgivable? Is there any way to get free guidance on what to do? There’s no restriction on applying with multiple lenders. June 30 or December 31, 2020. Through Monday afternoon, the Small Business Administration says the PPP loan program has approved more than 4.6 million loans nationwide. The PPP Loan Deadline Gets a Last-Minute Extension with $130 Billion Still Unclaimed A last-minute extension means small businesses have until Aug. 8 to apply … The deadline to apply for a Paycheck Protection Program (PPP) loan is fast approaching. June 30 would have been the last day for a bank to sign off on a loan. How can I apply? From what I’ve heard, most small businesses have been able to apply just with the help of a local banker, but really it’s going to depend on your circumstances, how much time you have, and your ability to dig out some financial history. The U.S. Congress passed a bill to extend the deadline for businesses to apply for Payroll Protection Program (PPP) loans to August 8. 4. To find out what small-business owners and nonprofit executive directors need to consider before submitting a PPP application, and what relief program could be next to apply for, I sought insights from Greg Reibman. How does the Economic Injury Disaster Loan (EIDL) Emergency Advance differ from the PPP? If you follow the spending rules, your entire loan can be forgiven, meaning you don’t have to pay it back. Published: Jun 23, 2020 Last Updated: Dec 21, 2020 by Joshua Sophy In Small Business News 0. You can apply for PPP loans at online sites like PayPal, and Kabbage, as well as through Kabbage. Update to PPP Loan Forgiveness Rules, New Application Deadline June 5, 2020 * ALERT – The new deadline to apply for a Paycheck Protection Program Loan is August 8. It also expands forgivable expenses to include PPE and employee protection costs related to Covid-19. Has it changed since the deadline was extended to August 8? Check with your local SBA office for a list of partners who offer free advice. California Lost Elon Musk, Will 13.3% Tax Or Increases Get You? This would mean you wouldn’t have to pay any or most of it back. PPP loans held particular appeal for small business owners for one big reason: They're eligible for complete forgiveness provided that 60% of their … Here’s the good part: Under PPP 2, businesses could use the funds to purchase protective equipment for employees and customers, including masks and sanitizers. The eligibility requirements are outlined for applicants on the U.S. Treasury and SBAwebsites. Review your PPP Loan Forgiveness Application options. I’ve devoted most of my professional career to making complex legal and tax concepts understandable to people who do not enjoy reading the Internal Revenue Code or the US securities laws. There’s been multiple complaints that the data the SBA released was incorrect or drew incorrect conclusions. Apply These 5 Secrets to Magically Transform Browsers Into Buyers, Zoho Vault: Say Goodbye to Security Threats, 90% of Companies Unprepared for GDPR Deadline, Apply These 10 Customer Service Strategies from Top Brands, Father’s Day Sales Not Enough to Lift a Weak June for Retailers, Report Shows, Apply These 8 Simple Techniques to Improve Retail Marketing, Payroll – 60% of money forgiven must be spent on payroll, 24 weeks to spend the loan money, up from 8, Loans after June 5 have a maturity of 5 years, not 2 years like loans before June 5. And for those of you who’ve received a PPP 1 loan and are crossing your fingers hoping a second PPP round becomes available, know that under the US Senate’s just-released stimulus plan, not every business which received the first round would qualify for the second. If you are certain a portion of your PPP loan will be unforgiven and want to conserve cash flow. The rules seem to have loosened since the first PPP was announced and launched. 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