June 12, 2020 | Read Time: 1 Minute
After several meetings and significant input from the small business community along with trade organizations like the AICPA, guidance and changes have been adapted to PPP Loan forgiveness requirements. In an effort to help more businesses qualify for forgiveness, the amount of the loan funds businesses need to spend on payroll cost was reduced from 75% to 60%, and banks are again allowed to provide partial forgiveness if the business does not meet this test. Additionally, the money not forgiven can be turned into a business note payable with favorable terms including 5 years to repay at 1% interest. Prepayment without penalty is still an option too. SBA certified lending institutions are working on the process for loan forgiveness and will be responsible to qualify applicants for the forgiveness as agents of the SBA. These adjustments, along with others are in favor of anyone that received this financial support during the last few months on the PPP Loan portion of the CARES Act.
With these new understandings and the fact that the PPP loan funds have been reestablished and are still available, this might be the best way for a business that has not yet applied for the PPP loan program to get money to help their restart. Still, your local SBA certified bank is the best way to learn more about the application process but if you need help, Huberty does have a PPP loan support plan available. Connect with your local Huberty office in Sheboygan, Plymouth, Fond du Lac, Ripon, or Minocqua, Wisconsin for more information or to get signed up.