June 5th proved to be a crucial day for business owners as President Trump signed new regulations into law changing several key components of the SBA PPP loan. Changes include:
- The extension of the 8-week period to 24-weeks
- The rehiring of employees can now be done until December 31st
- The 75/25 rule has now been changed to 60/40
- The loan now has a 5-year maturity
If you are one of the millions of small business owners concerned about their business and its financial health through COVID-19, don’t worry, you are not alone. With unsteady revenue streams and bills to pay, business owners across the country are looking for a safety net to support them. With the recent release of the PPP Loan forgiveness application, the government has proven their commitment to preserving the many small businesses around the country, while business owners breathe sighs of relief knowing that they can have their PPP loans forgiven. These small business owners and their employees have had to make significant changes in order to mitigate damage during this unprecedented period. The government’s recent introduction of the CARES Act, and most notably the PPP Loan, has proven essential to small business around the country, but one question remains- How can businesses get their PPP loan forgiven?