House Passes PPP Loan Forgiveness Bill, Treasury Issues Harsh Forgiveness Regulations - What You Need To Know

All Business Contributor By Neil Hare

The Paycheck Protection Program authorized by the CARES Act. reduces the amount of the loan needed to be spent on payroll from 75% to 60%, thus increasing the amount of funds available for other expenses from 25% to 40%. These expenses still include rent, mortgage payments, utilities, and interest on loans.

The plan outlined in the bill would also offer the following:

• Extend the window businesses have to use the funds from eight weeks to 24 weeks
• Push back a June 30 deadline to rehire workers to December 31, 2020
• Provide more leeway on loan forgiveness for business owners who show they could not rehire workers or reopen due to safety standards
• Extend the time recipients have to repay the loan
• Let companies that get loan forgiveness defer payroll taxes

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