PPP Loan Forgiveness Updates for Manufacturers
The Paycheck Protection Program Flexibility Act of 2020 was recently signed into law, and it significantly changes the Paycheck Protection Program (PPP) loan forgiveness options. Borrowers now have more time to use funds, the time to satisfy safe harbors has been extended, and payroll requirements have been relaxed.
Katz, Sapper & Miller and the Indiana Manufacturers Association co-hosted a webinar on June 18, 2020, to discuss the key changes to PPP loan forgiveness and how it will affect manufacturers, including:
- Extending the loan repayment period from two to five years
- Extending the covered period borrowers have to use the funds from eight weeks to 24 weeks, or Dec. 31, 2020 (whichever is earlier)
- Allowing borrowers who receive loan forgiveness to also defer payroll taxes
- Reducing the amount forgiven required to be spent on payroll from 75% to 60%
- Pushing back the rehire date from June 30 to Dec. 31, 2020
- Other key details to know about loan forgiveness
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