Receive a funding estimate with just a few quick questions!

Funding calculator
Group 45
(844) 284–2725 Apply now
2 min read

Changes to PPP Forgiveness: What Small Businesses Need to Know

Great news, small business owners! The U.S. House and President Trump recently approved and signed legislation that makes it easier for Paycheck Protection Program (PPP) recipients to qualify for forgiveness of the loans they received. Here are some highlights. If the bill passes, borrowers:

  • would have 24 weeks to spend their funds, up from the current 8 weeks.
  • would have to spend 60% of the PPP funds on payroll costs to qualify from full loan forgiveness, down from the 75% required today. The rest could be spent on other costs like rent or mortgage payments, utilities, or interest on loans.
  • could rehire workers as late as December 31, 2020, a full six months later than the current deadline of June 30, 2020.

The new legislation also provides more leeway on loan forgiveness for business owners struggling to meet the above deadlines, like being unable to rehire workers or reopen due to safety standards. The time recipients have to repay the loan has been extended from two years to five years, and those that receive loan forgiveness can defer payroll taxes.

This bill, called the Paycheck Protection Flexibility Act, H.R. 7010, provides much-needed additional relief to small businesses and other recipients of the PPP loan.

Regardless of the new changes, the rules and restrictions for PPP loan forgiveness, specifically what portion of the loan can be waived and the administrative tasks placed on business owners to keep track of these requirements is a substantial burden for many–after all, the borrower is ultimately responsible for their forgiveness calculation. This total is a moving target, but we hope that the funding brings much-needed relief to all recipients and their employees struggling during this time.

There are still PPP funds available to take advantage of for your small business, but it’s going fast. If you’re interested in learning more about the Paycheck Protection Program (PPP), contact SBG Funding to secure your loan today!

*SBG Funding is not an agent or lender for PPP loans.  SBG Funding offers advisory services on a suite of commercial financing products and works with agents who specialize in helping small business owners looking to apply for PPP Loans.  As part of our service we are happy to refer you to these agents and help guide you through the process at no charge.  You are not required to change your banking relationship in order to apply either!

icon/functional/cross/dark_blue icon

Great stuff!

A funding specialist will get back to you soon.

If you can’t hang on then give us a call at (844) 284-2725 or complete your working capital application here.

Apply now

Want to stay up to date with the latest SBG Funding updates?

Leave your email address with us!

Not ready now?

Leave your email address so we can keep in touch!