PPP “Forgiveness” Webinar
(June 15, 2020)
Cleveland, TN: As the initial phases of the Paycheck Protection Program (PPP) wind down, the “forgiveness” process for these loans becomes more important. Although limited guidance has been issued by the Small Business Administration (SBA) on the “forgiveness” process, Art Rhodes, President and Chief Executive Officer of the Church of God Benefits Board, recently did a webinar, discussing the information that we know at this point about how the forgiveness process will work.
The webinar incorporates the “fix-it” legislation, formally called the “Flexibility Act,” that was passed by Congress on June 4 and signed into law by President Trump on June 5, 2020.
House and Senate Approve PPP Fixes
(June 4, 2020)
Cleveland, TN: After a series of fits and starts, the United States Senate approved the House version of the “fixes” for the Paycheck Protection Program (PPP). The legislation, known as H.R. 7010, was passed by the House last week and then adopted by unanimous consent last night in the Senate.
Since many early PPP loan recipients are at the end of their “covered period” under the initial CARES Act provision, it was important for Congress to act expeditiously if they were going to revise the “forgiveness” portion of the legislation. In unusual speed and bipartisanship, both bodies of Congress moved to provide additional relief to those who had obtained loans under the PPP program.
Although the final legislation has not been signed into law, it is expected that President Trump will approve and sign the bill before the end of this week.
Many changes were included in the “fix-it” legislation, but the primary changes include:
Lengthen the loan forgiveness period from 8 weeks to 24 weeks,
Lower the percentage of the loan proceeds that must be used for payroll from 75% to 60%, and
Increase the loan repayment period from 2 years to 5 years.
Because of these changes, it is anticipated that additional guidance from the SBA will be forthcoming on how to carry out the forgiveness portion of the PPP loans. Hopefully that guidance will be available within the next few days.
To address these new provisions and the forgiveness process, the Church of God Benefits Board will host a webinar on Friday, June 12.