Under the Paycheck Protection Program (PPP) created by the CARES Act, loans may be forgiven if borrowers use the proceeds to maintain their payrolls and pay other specified expenses.
The U.S. Chamber Guide to PPP Loan Forgiveness reflects recent substantive changes made by Congress and the administration to the PPP program to provide borrowers with more flexibility. These changes include:
– Extending the time to spend PPP funds from 8 weeks to 24 weeks;
– Lowering the amount that must be spent on payroll from 75% to 60%;
– Extending the deadline to restore FTEs and payroll from June 30, 2020 to Dec. 31, 2020; and
– Setting the repayment term for loans made after June 4, 2020 at five years.
The U.S. Chamber’s updated Guide to PPP Forgiveness reflects all of these changes, as well as others made in recent guidance issued by the Department of the Treasury. Please note that while this guide reflects all of the most recent changes, it is possible that further changes could be made. Visit www.uschamber.com for updates.
