Chamber Update for Wednesday, June 17th
The last day to apply for the Paycheck Protection Program (PPP) is June 30th. If you did not apply previously because the parameters around forgiveness did not align with your business, it is worth reconsidering the program now that Congress passed the PPP Flexibility Act. Some of the major changes include extending the covered period from 8 weeks to 24 weeks and reducing the amount that must be applied to payroll from 75% to 60%.
To read about all of the changes implemented with the PPP Flexibility Act, click here. To see a list of eligible lenders, click here.
The Economic Injury Disaster Loan (EIDL) and the EIDL Advance application portal has been reopened for small businesses. The U.S. Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.
SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.
SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program. Today, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.