Over the last couple of months, we’ve been discussing the CARES Act and the Paycheck Protection Program in great detail. Today, we have another update related to the PPP. On June 05, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA). This act brings substantial changes to the parameters surrounding forgiveness and amortization periods. Grant is here today to review the provisions of the new law and how you can take advantage of it.
Show Notes
[03:21] What Led to the PPPFA – The limitations of the paycheck protection program that paved the way for this new piece of legislation.
[07:10] Provisions of the PPPFA – Grant reviews how the new act reduces the limitations of the initial paycheck protection program.
[12:55] Payroll Taxes & PPP – How the PPPFA allows you to apply for PPP loans while deferring payroll taxes.
[15:33] Business Owner Compensation – A new provision in the PPPFA that allows partnerships, sole proprietorships, and single-member LLCs to add their business owner compensation to the calculation of the loan amount.
[19:52] Amortization Period – Some of the changes made to the amortization period of PPP loans after the initial launch of the PPP.
[24:00] What Was Not in the Bill – An important part of the PPP that was a catalyst for discussions but wasn’t included in the PPPFA.
[26:08] Planning Opportunities - Grant shares his take on some of the opportunities you can use to make the best of the forgiveness program.
Resources
Paycheck Protection Program Flexibility Act:
https://www.congress.gov/116/bills/hr7010/BILLS-116hr7010eh.pdf
Download PPP Forgiveness Application:
https://www.sba.gov/document/sba-form--paycheck-protection-program-loan-forgiveness-application
SBA’s PPP FAQ for Lenders & Borrowers:
https://www.sba.gov/document/support--faq-lenders-borrowers