Welcome to our Frequently Asked Questions (FAQs) page. Here you will find answers to often asked questions about current issues that affect small business. If you have a question that isn’t answered here, please contact us so that we may assist you.
Questions about the New “PPP Flexibility ACT”
Under the original PPP guidelines, the company needed to spend a minimum of 75% of their loan to have a possibility of full forgiveness.
Under the new PPP “Flexibility Act” (PPPFA), the percentage has been changed to 60% of the loan amount. This gives the company some flexibility in the use of the funds.
Under the original terms of the PPP, the loan was for 2 years.
Under the new “Flexible Act” (PPPFA) the loans issued after June 5, 2020 would have a minimum maturity date of 5 years. For loans that were issued prior to June 5, 2020, the business can check with their lender to change the terms.
Under the Original PPP the company had a “covered” period of 8 weeks to restore their FTE and Payroll Costs
Under the new “Flexibility Act” (PPPFA) the new covered period is 24-weeks and but the covered period cannot go beyond December 31, 2020 Those with current loans can stay with the 8-week period of choose to extend the 8-weeks to 24 weeks.
Under the original PPP Act their were two exceptions that would not reduce the forgiveness possibility
- If an employee rejected an offer to be rehired
- If an employee during the covered period was fired
- For cause
- Voluntarily resigned
- Voluntarily requested a reduction in hours
Under the new “Flexibility Act” (PPPFA) there is a new exception from reductions of forgiveness
- If the company is unable to rehire an individual who was an employee before February 15, 2020
- Can document that there is an inability to hire a similar qualified employee on or before December 31, 2020 or
- The company can demonstrate that they cannot return to the same level of business activity as they operated at prior to February 15, 2020
There are two new PPP forgiveness applications.
- One for sole proprietors and sub contractors and those that meet certain qualifications (EZ form)
- One for others who have employees that do not meet the EZ form requirements
Attached is the New EZ form application and the form for those who do not qualify to use the EZ form