Posted by Kathy Dean-Bradley, CPA
Late last night, the Treasury released an interim final rule with additional guidance regarding H.R. 7010 (Paycheck Protection Program Flexibility Act of 2020). Updated application forms for borrowers and lenders were also released. Below is an outline of highlighted changes from the guidance:
- Extends eligibility for the program from June 30, 2020 to December 31, 2020.
- Provides a 2-year maturity of loans if the loan was made before June 5 and a 5-year maturity of loans if the loan was made after June 5.
- Provides forgiveness of principal and all interest if the loan forgiveness application is submitted within 10 months after the covered period.
- Extends the loan forgiveness period from 8 weeks to 24 weeks. If the loan was disbursed before June 5, an 8-week period can still be elected.
- Lowered the amount of payroll cost to 60% in order to be eligible for full forgiveness. If payroll costs are less than 60%, then the maximum forgiveness is limited to the payroll costs divided by 60%.
- Confirms that loan forgiveness can be partial if less than 60% of the loan is used on payroll costs.
We are sure that additional guidance and revisions will be released over time. BLS will continue to send important updates as information becomes available. Reach out to your BLS Team Member or email us at firstname.lastname@example.org with any questions.
We are here for you!
Your BLS Team