This article from WSJ touches upon some items that are in the works.
The house passed a bill last week extending the 8 weeks to spend the funds to 24 weeks. That bill is in the Senate now and being negotiated with the bill that Rubio put up to extend the period to 16 weeks. Some items included in the bill(s) are –
- Change in 75/25 split of usage to 60/40
- Allow PPP recipients to defer payroll taxes
- Extend term on residual loan
Don’t miss the language below from the forgiveness guidelines, this may mean not everyone below $2 million loan will get a pass without a review.
“When will SBA undertake a loan review? For a PPP loan of any size, SBA may undertake a review at any time in SBA’s discretion. For example, SBA may review a loan if the loan documentation submitted to SBA by the lender or any other information indicates that the borrower may be ineligible for a PPP loan, or may be ineligible to receive the loan amount or loan forgiveness amount claimed by the borrower.”
Additional guidance on PPP forgiveness released: read it here.
The IRS has concluded no deductions will be allowed for expenses paid with PPP Funds. Members of Congress may overrule this.
Richey May partnered with the Mortgage Bankers Association to provide a live webinar on Friday, April 3, 2020 covering the SBA PPP Program details. The live event was open to member, but you can access the recording here.
The Paycheck Protection Program is designed to help businesses cover payroll and other expenses during the crisis. The final guidelines have not been released yet.
The SBA released Docket SBA-2020-0015 with the Interim Final Rule to implement sections 1102 and 1106 of the CARES Act, aka the Paycheck Protection Program (PPP). You can read the full text here.