Paycheck Protection Program (PPP)

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Click here for newly released SBA Guidance (06/03/20 - 1:30 p.m.)

The U.S. Senate passed the House version of Paycheck Protection Program (PPP) legislation, tripling the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans.

NEW - What you should know about PPP Loan Forgiveness

Compare the EIDL and PPP        Paycheck Protection Program Q&A

 

Commerce Business Briefing - June 18th

19,000 North Dakota businesses received the PPP loan and more details on the loan forgiveness will be released on the Commerce Business Briefing scheduled for June 18th at 9 a.m.  Click here for details and to register

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NEW - 06/16/2020

The bill transforms the PPP in nine key ways (provided by Inc.com)

  1. Extends the deadline to use a PPP loan to December 31, 2020, from June 30, 2020.  The deadline to apply remains June 30, 2020.
  2. Reduces the proportion of the loan that businesses must spend on payroll to be eligible for full forgiveness. Under this bill, 60 percent of PPP funds must be spent on payroll costs like salaries and benefits, while the rest can be spent on other allowable expenses. Currently, the expense ratio for forgiveness is 75:25.
  3. Extends the repayment period for PPP loans to five years from the current two. 
  4. Eliminates an earlier rule that penalizes businesses in their loan forgiveness calculation if they don't maintain their pre-crisis head counts, because many can't reopen at their previous level of operation.
  5. Codifies an earlier ruling providing safe harbor for business owners who made a good-faith effort--but were ultimately unable--to rehire furloughed or laid-off staff.
  6. Gives borrowers 10 months from the last day of the covered period--or alternative covered period--to apply for loan forgiveness. 
  7. Defers principal payments, interest, and fees until the final forgiveness decision is made between lenders and the SBA. Currently, borrowers can defer payments for up to six months. But recently updated forgiveness guidance allots banks 60 days to review forgiveness applications, and then the SBA gets another 90 days to make a ruling. Accumulated delays mean some businesses might have to start payments on a loan that would eventually get forgiven. The bill prevents that scenario from happening.
  8. Expands the forgiveness period for expenses to 24 weeks from eight weeks or until the end of the year, whichever comes first. Currently, only money that gets spent in eight weeks from the loan disbursement date--or the date of the first pay period after the loan is disbursed--is eligible for forgiveness.
  9. Employers can now defer their portion of payroll taxes. The bill strikes wording in the Cares Act that bars business owners who receive forgiveness on their PPP loans from deferring their payroll taxes. Taxes incurred in 2020 are to be paid in two installments: Half is owed by December 31, 2021, and the other half by December 31, 2022.

REMINDER: If you have not applied for PPP funding, you have until June 30th to submit an application. Click here to apply!

Click here for more information and to apply for the SBA - PPP loan

NEW - 06/17/2020

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

SBA published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers.  Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. 

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.  These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan. 

Click here to view the EZ Forgiveness Application.

Click here to view the Full Forgiveness Application.

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Additional Resources

PPP Report - Approval through 05/30/2020

Small Business Administration - PPP Application, program guidance and loan forgiveness

US Chamber of Commerce

US Department of the Treasury

 

Sole Proprietorship - COVID-19 Federal Assistance

Click here for Q&A's on Sole Proprietorship Federal Assistance relating to the CARES Act.

Non-Profits - COVID-19 Federal Assistance

Click here for Q&A's on Non-Profits Federal Assistance relating to the CARES Act.

Faith-Based - COVID-19 Federal Assistance

Click here for Q&A's on Faith Based Federal Assistance relating to the CARES Act.