Confused by numerous PPP loan and forgiveness updates? You’re not alone. To make it easier, we ensure that all PPP loan content is updated to contain the latest rules/requirements when changes come out. As a handy reference, we’ve compiled the following timeline with milestone updates for 2020 and 2021.
July, 2021
Although the SBA dropped the requirement of a “necessity questionnaire” (Form 3509/3510) in July 2021, the SBA will continue to audit the necessity qualification based on the economic uncertainty at the time the PPP loan application was submitted.
February 22, 2021
On February 22, President Biden announced a series of changes to the Paycheck Protection Program (PPP). The changes are meant to help smaller businesses and take effect almost immediately.
December 27, 2020
The Consolidated Appropriations Act (CAA) was signed by President Trump. It overrules the IRS’s previous position and now allows businesses to deduct eligible expenses included in PPP forgiveness.
October 30, 2020
On October 30, word came out that the SBA has prepared the new Forms 3509 and 3510 to help businesses and nonprofits explain their loan spending, the former to be used by for-profit borrowers and the latter by nonprofits who hold aggregated PPP loans of at least $2 million.
September 28, 2020
With yet another stimulus impasse declared by Congress, prospects for significant changes or enhancements to the Paycheck Protection Program (PPP) look dim, at least until after the election when both houses rebalance. This further adds to the confusion among borrowers and lenders regarding forgiveness and tax implications.
June 17, 2020
The SBA and the Treasury Department released new guidance and application forms for PPP loan forgiveness. Fortunately, they cleared up a few big questions people have including the maximum total compensation if electing 24 weeks, the safe harbor restoration date and the provision for selecting a Covered Period between 8 and 24 weeks. Another important change is the introduction of an EZ form to be used by borrowers that meet the criteria.
June 3, 2020
Borrowers who have exhausted their entire PPP funds are not required to wait until the 24 weeks have passed to file their forgiveness applications. Those who are in this position may very well wish to get the debt off their books in case they will need additional bank financing, and/or get forgiveness before the rules change again.
In swift moves Wednesday, the Senate unanimously approved the bill passed last week by the House of Representatives that significantly modifies the Paycheck Protection Program (PPP) rules. With this action, the bill makes its way to the President’s desk for signature into law, which is widely expected.
May 28, 2020
The House passed the Paycheck Protection Program (PPP) Flexibility Act (H.R. 7010) with an overwhelming bipartisan vote — a first step toward it becoming law. The bill included a few key changes to the PPP including extending loan repayment period from 2 to 5 years, extending the Covered Period to 24 weeks or December 31, 2020 (which means any loan funded by July 17, 2020), revising the percentage of forgivable spending on non-payroll costs and allowing payroll tax deferrals even with loan forgiveness.
May 16, 2020
The much-anticipated PPP loan forgiveness application and instructions became available on May 15, 2020. This application provides borrowers with both the form on which they will need to submit the loan forgiveness application to their lender, along with desperately needed guidance in the form of attached instructions.
April 27, 2020
On Friday April 24, 2020, President Trump signed legislation providing an additional $310 billion in funding for the Paycheck Protection Program (PPP), $60 billion of which is reserved for community banks and small lenders; $75 billion for hospitals; $25 billion to support testing efforts; and $60 billion for emergency disaster loans and grants. There are concerns that access to the forgivable loans has not been limited to those who truly need it, to which the treasury has issued certain stipulations that should be noted.
April 16, 2020
The SBA announced this morning that they are no longer accepting applications for the Paycheck Protection Program (PPP) loans or Economic Injury Disaster Loans (EIDLs), due to funding limits being reached. They did advise that any EIDL loan applications already received will continue to be processed on a first come-first served basis.