New Information Just Added:

EMERGENCE 

Interactive State-by-State Opening Map: The US Chamber of Commerce has created an interactive map that provides the latest state-by-state guidelines, timelines and other critical information for businesses aiming to restart safely and sustainably amid the pandemic.

Return to Work Protocols by State: As states soften stringent business closures, here is a listing of current state-by-state business reopening guidelines that you can reference for guidance to assist with your particular situation.

RECOVERY

PPP Loans: What Business Owners Need to Know About the Latest Changes: As a business owner, there are many moving parts and recent enhancements to the PPP program. Including, but not limited to: new 8/8 filing extension , sole-proprietor limit on payroll, extension of workforce restoration date to 12/31, employee reduction safe harbors: Govt. guidelines and “good help is hard to find”, 8 or 24 week flexible reporting periods, how to treat S-corp owner health care, owner-employee compensation limitations and how to handle retirement plan expenses.  See here for more detailed information. 

House & Senate Approve 5-week PPP Extension The House  and Senate have joined to approve a 5 week extension of the PPP program that had expired on 6/30.  This new extension extends the PPP application period until August 8 and gives small businesses additional time to apply for the $129 billion in PPP funding remaining. 

SBA releases interim rule allowing PPP recipients to apply for early loan forgiveness: This new ruling allows borrowers to apply for PPP loan forgiveness before their covered period expires if the borrower has already used all of their PPP proceeds. However, early loan forgiveness would eliminate a borrower’s “safe harbor” provision to restore reduced compensation (> 25%) until 12/31 to avoid penalties.  Read more here.

SBA releases revised PPP Loan Forgiveness Application: The SBA has officially released a revised PPP  forgiveness form that includes updates related to recent PPP legistlation (ex. new 24-week covered period, vs. original PPP 8 weeks).  There is also a new “EZ” forgiveness form for borrowers that are self-employed and have no employees.

PPP 60% “Cliff” Removed by SBA: On 6.09.20 SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin clarified that partial loan forgiveness will also be available under the 60% threshold. Specifically, if a borrower uses less than 60% of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60% of the loan forgiveness amount having been used for payroll costs..  See here for full details. 

Senate Passes Bill that Relaxes PPP Forgiveness Requirements: This new legislation extends from eight weeks to 24 weeks the time PPP recipients have to spend their funds. The measure also lowers to 60% from 75% the portion of PPP funds borrowers must spend on payroll costs to qualify for full loan forgiveness. That change will allow borrowers to direct more funds to costs such as rent and utilities.  See here for full details (including the newly instituted 60% payroll expense “cliff”). 

EIDL vs. PPP – Summary of Differences:  Here is a summary of the differences between these two programs. NOTE: You can apply for and obtain both. However, if you receive both, and the EIDL grant, the grant will count against your total PPP forgiveness amount.

Fed releases details on new Main Street Lending Program Intended to assist companies between 501 – 10,000 employees.  Visit Recovery Resources link above for more information.

THREE KEY SMALL BUSINESS COMPONENTS
Visit Recovery Resources link above for more information.

• Paycheck Protection Program: Forgivable loan equal to the lesser of $10M or 2.5x average monthly payroll for 12 months preceding loan date. Loan is forgiven if used for payroll, healthcare, mortgage, rent or utilities (assuming company payroll & headcount remain the same as before crisis). Applications for PPP start on 4/3/20.
  Note:  It is projected that the $349B allocated to this program will not support all requests for assistance, so it is important to apply early as banks are processing requests on a “first come / first serve” basis.
• EIDL (Economic Injury Disaster Loan): Emergency loans up to $2M and maturity up to 30 years. No fees or personal guarantees required.
• Emergency Economic Injury Grants: Emergency grant at time of EIDL loan application for up to $10,000. Grant will be distributed in 3 days. Forgiven, even if loan is not approved.