PPP Flexibility Act Updates – June 8th Treasury Press Release
The SBA and the US Treasury released a joint Press Release on June 8th clarifying a few important topics for small business owners using the Paycheck Protection Program. The Press Release clarifies a few key points of the PPP Flexibility Act.
Press Release can be found here: https://home.treasury.gov/index.php/news/press-releases/sm1026
The June 8th Press Release clarifies a few topics:
- There is no forgiveness cliff if you don't spend at least 60% of your loan on payroll costs. It is a sliding scale.
- The 24 week covered period is the new normal, but borrowers can elect into an 8 week period.
- The 5 year loan term is ONLY for new loans issued after June 5th
- No new loans will be issued after June 30th
- Extension of the repayment period
- and a reiteration of the new FTE exemptions
We are still awaiting full Treasury guidelines on the PPP flexibility act, which we will be looking for here: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
Find Small Business PPP Resources here: http://learn.claracfo.com
To book a time to talk about your PPP Loan go here: https://claracfo.as.me/claritysessions
Find us at: https://claracfo.com/