10. An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. In fact, this program is really designed to help you open and stay open during this down period. But as the June 30 loan application deadline looms — and after a more recent revamping of several of the program’s initial flaws — more than $130 billion in would-be loans remains untouched. The PPP has been extended before. A one-page summary from the Senate explains more about the PPP Second Draw Loans and the PPP improvements in this potential new law. I’m never that optimistic. Although your loan document may state that your first payments are due in six months, the PPP Flexibility Act signed on June 5, 2020 revised the law so that payments are not due on your PPP loan until forgiveness has been determined. Oh boy, this is a tricky one. Accountants say small businesses will need more targeted help to … So, while I hate to sound like a broken record, apply for PPP 1 now. The … Yes. He’s the president of the Newton-Needham Regional Chamber in the suburbs west of Boston, and in that role he regularly fields questions from businesses about PPP loans. On July 6, the US Treasury and Small Business Administration (SBA) released the names and loan data of over 650,000 businesses that received forgivable Paycheck Protection Program (PPP) loans of more than $150,000. The legislation would extend the deadline for when the PPP can accept applications for forgivable loans. 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. If you didn’t complete an application for a Paycheck Protection Program (PPP) loan before the previous deadline, you’re in luck. "Small Business Trends" is a registered trademark. If you follow the spending rules, your entire loan can be forgiven, meaning you don’t have to pay it back. What is the Paycheck Protection Program (PPP)? There are two applications that you can choose from to complete. The program officially runs out on June 30, 2020. What’s different now in how and when a business can spend the money? Through Monday afternoon, the Small Business Administration says the PPP loan program Check with your local SBA office for a list of partners who offer free advice. Should I apply for PPP loan forgiveness sooner or later? Most of the most recent applicants “are the smallest of the small,” according to one SBA official. The application deadline for PPP loans remains June 30. It could be just days — or stretch into weeks — before small businesses can apply. 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 … 3. Five Tax Takeaways From Country-By-Country Data, IRS Says You Don’t Need To Do Anything To Get Your Stimulus Check (And Answers Your Other Questions), Treasury Says Some Stimulus Checks Will Reach Taxpayers This Week. 27 October 2020 > Small Businesses Many businesses applying for loan forgiveness were shocked when they saw an October 31st deadline listed on the upper right corner of their application forms. On July 4, President Donald Trump extended the deadline for PPP loan applications for more than another month.. The PPP rollout was very frustrating. So, you got your Paycheck Protection Program (PPP) loan and have used the all money on approved forgivable expenses, including payroll, business rent, business utilities, and/or business mortgage interest. © Copyright 2003 - 2020, Small Business Trends LLC. One is a “borrower-friendly” application and a separate form, dubbed by the SBA as the “EZ version”. But you do need to be sure you understand the requirements and stay on top of any changes. Forgiveness application due date: There is no defined deadline for borrowers submitting the forgiveness application, but borrower payments will be required 10 months after the end of the covered period as explained in FAQ No. What’s the attitude of local small companies to the PPP? Published: Jun 23, 2020 Last Updated: Dec 21, 2020 by Joshua Sophy In Small Business News 0. 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 … You must attest to a good-faith effort to comply with Paycheck Protection Program loan requirements, you have to retain relevant records for three years, and you may need to complete and submit demographic information. Small businesses still have until August 8 to apply for potentially forgivable loans via the Paycheck Protection Program (PPP), which was extended from its original June 30 deadline. QUESTION: I’m really confused on the Payroll Protection Program (PPP) loan forgiveness application deadline. 15. ... For details, see the SBA’s revised PPP Loan Forgiveness Application and Instructions or streamlined “EZ” application for eligible borrowers. 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. 2. It released a third PPP Loan Forgiveness application for those who received $50,000 or less in loan proceeds. Even if you applied at one lender, you can apply at others if your lender is taking a long time. 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. Do I need to rehire all of my employees to make the loan forgivable? On Saturday July 4, 2020, President Trump signed a new law extending the deadline for applying for a Paycheck Protection Program (PPP) loan from June 30 to August 8. Please note that October 31, 2020 is not the deadline to apply.. The deadline to apply for a PPP loan was initially June 30, 2020, and was later extended to August 8. On Wednesday, the House passed a measure to extend the Paycheck Protection Program application deadline to Aug. 8. 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 … In myStockOptions.com, I created the premier online resource of educational content and tools on stock compensation (stock options, restricted stock, and employee stock purchase plans) for plan participants, financial advisors, and companies. [The most recent SBA data, dated July 24, reports that over 5,005,261 loans have been made from 5,458 lenders and confirms that the PPP still has almost $130 billion in unallocated funds.]. 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. 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. You’d have to demonstrate at least a 50% revenue decline in the first or second quarter of this year, compared to the same quarter last year. The eligibility requirements are outlined for applicants on the U.S. Treasury and SBAwebsites. With President Trump’s signature on July 5th, the new application deadline is now August 8, 2020. PPP loans are intended to help businesses keep their workforce employed during the coronavirus (COVID-19) crisis. PPP FAQs - Loan Eligibility and Application Requirements. myNQDC.com is a sibling website I created on nonqualified deferred compensation. Cleveland-based KeyBank has processed more than 40,000 PPP loan applications for about $8.5 billion nationwide, according to Matthew Pitts, regional communications manager for the lender. 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. Yes, 501(c)(3) nonprofits are eligible, following the same rules. Today Is Officially the Deadline for Companies to Return Their SBA PPP Loans ... SBA Approves Simple 1-Page PPP Forgiveness Application for Loans of $50,000 or Less. The SBA says loans are fully forgiven if any businesses getting money spends it on: The Program underwent simplification with the recent passage of the Paycheck Protection Program Flexibility Act on June 5, 2020. The new deadline for PPP loan applications is August 8. Keep in mind, you can only accept funding from one PPP loan. 4. Businesses that received a PPP loan may not receive another PPP loan that aggregates to more than $10 million, the maximum under the original PPP. Companies borrowed more than $515 billion dollars. Business owners and entrepreneurs who receive loans can later apply to have some or all of the loan forgiven by the Small Business Adminstration, if they meet the Program criteria. 12. 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. This law lowered the portion of the PPP loan that must be spent on payroll to 60% from 75%. This would mean you wouldn’t have to pay any or most of it back. Or is there is no rush? PPP Loan Deadline is June 30 – Still Time to Apply. If you are certain a portion of your PPP loan will be unforgiven and want to conserve cash flow. 46. Hours before the original application deadline of June 30th, Congress voted to extend the PPP loan application deadline. Apply now. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. If you had a PPP loan prior to the Paycheck Protection Program Flexibility Act being signed, you can choose to use the original 8-week period instead of the 24-week period. 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. 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