Tinley Park businesses have until Tuesday, June 30 to apply for the Paycheck Protection Program (PPP), a loan offered by the Small Business Administration (SBA) to provide a direct incentive for small businesses to keep their workers on the payroll.
The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. Businesses can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
The U.S. Senate recently passed a new version of the PPP legislation. Under the new version, current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. New PPP borrowers will have a 24-week covered period, but the covered period can’t extend beyond Dec. 31, 2020.
The new version also drops the payroll expenditure requirement to 60% from 75% but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven.
For details on other legislative updates, see
this story in the Journal of Accountancy.
