Extension and amendment to PPP loan program passes – here’s what you should know.

Unfortunately, the fluid situation regarding the COVID-19 epidemic has left many, including congress, reacting at a pace that may have been too slow to impact the spending of the PPP funds some businesses received prior to this latest amendment to the PPP loan program. There are likely quite a few employers that have met the 8-week requirement and spent their funds who will now not have the ability to take advantage of these extensions.

Congress has now passed reforms headed to the executive for signature.

The Bill:

  • Extends the eight-week period for spending to 24 weeks or the end of 2020, whichever occurs sooner.
  • Increases the two year loan term to five years for most applicants awarded after the passage of the amendment.
  • Changes the non-payroll expenses cap from 25% to 40% for achieving maximum forgiveness.
  • The full-time-employee rehiring criteria that would have cut the loan forgiveness has been augmented so now, the forgiveness will not be reduced where the employer shows it is unable to rehire the employee, is unable to hire a similarly qualified employee before December 31, 2020, or shows it cannot return to the same level of business activity as prior to February 15, 2002 due to new standards for sanitation, social distancing or other safety requirements.
  • Tax deferment is now available to PPP borrowers.

We’ll post a more thorough analysis once the bill is singed and regulations get produced.

Ashley Brandt

Hi there! I’m happy you’re here. My name is Ashley Brandt and I’m an attorney in Chicago representing clients in the Food and Beverage, Advertising, Media, and Real Estate industries. A while back I kept getting calls and questions from industry professionals and attorneys looking for advice and information on a fun and unique area of law that I’m lucky enough to practice in. These calls represented a serious lack of, and need for, some answers, news, and information on the legal aspects of marketing and media. I've got this deep seeded belief that information should be readily available and that the greatest benefit from the information age is open access to knowledge... so ... this blog seemed like the best way to accomplish that. I enjoy being an attorney and it’s given me some amazing opportunities, wonderful experiences, and an appreciation and love for this work. I live in Chicago and work at an exceptional law firm, Goldstein & McClintock, with some truly brilliant people. Feel free to contact me at any time with any issues, comments, concerns… frankly, after reading this far, I hope you take the time to at least let me know what you think about the blog and how I can make it a better resource.

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