Over the weekend, President Trump signed the Paycheck Protection Flexibility Act, which creates some important changes to the SBA’s Paycheck Protection Program, including extending the length of time that forgivable loans can be spent from eight weeks to 24.
We anticipate that the Treasury Department will, at some point, update their FAQ page on the program. You can view a full list of relevant PPP documents and guidance on the SBA’s website at this link. Please note that June 30 remains the deadline for applying for a PPP loan. As of May 30, more than $510 billion in SBA 7(a) Loans had been approved through the program, but tens of billions of dollars remain available.
In addition, the Internal Revenue Service has published a helpful PDF summary of some of the tax credits made available to businesses through the CARES Act and the Families First Coronavirus Response Act (FFCRA).
The IRS document includes an outline of the Employee Retention Tax Credit, which is an alternative to the PPP created by the CARES Act, and the paid sick and family leave credits that were expanded through the FFCRA. We encourage you to print out and review the PDF, which explains the parameters of these important tax credits in a very simple and straightforward manner.Download Bulletin PDF