Good News for Small Business Owners
Benefits of the Paycheck Protection Flexibility Act
On June 5th the President signed into law the Paycheck Protection Flexibility Act. Consistent with its name, the Act makes it easier for loan recipients to qualify for loan forgiveness. Most notably, the Act extends the period of time by which the money must be used in order to qualify for forgiveness from 8 weeks to 24 weeks and it reduces the amount of the funds that must be used for payroll from 75% to 60%.
Additionally, business will not lose forgiveness eligibility if they can demonstrate that some employees decline to return to their jobs or that the number of employees that they had on staff prior to the pandemic is no longer needed.
Other provisions include extending payroll tax relief to employers through the end of 2020 and extending the repayment period for any non-forgiven portion of any loans from two years to five years.The SBA resumed accepting Paycheck Protection Program loan applications July 6, 2020. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
Related Reading:
President Trump Signs Law Easing PPP Loan Rules: 6 Things To Know (Forbes)
The Paycheck Protection Program (Small Business Administration)
John H. Robinson is the founder of Financial Planning Hawaii and a co-founder of software maker, Nest Egg Guru.
DISCLOSURES: Securities offered through J.W. Cole Financial, Inc. (JWC) member FINRA/SIPC. Advisory services offered through Financial Planning Hawaii and J.W. Cole Advisors, Inc. (JWCA). Financial Planning Hawaii and JWC/JWCA are unaffiliated entities.
Fee-only financial planning services are provided through Financial Planning Hawaii, Inc, a separate Registered Investment Advisory firm. Financial Planning Hawaii does not take custody of client assets nor do its advisers take discretionary authority over client accounts.
The information contained herein is general in nature. Neither Financial Planning Hawaii nor J.W. Cole provides client-specific tax or legal advice. All readers should consult with their tax and/or legal advisors for such guidance in advance of making investment or financial planning decisions with tax or legal implications.
Securities offered through J.W. Cole Financial, Inc. (JWC) member FINRA/SIPC. Advisory services offered through Financial Planning Hawaii and J.W. Cole Advisors, Inc. (JWCA). Financial Planning Hawaii and JWC/JWCA are unaffiliated entities.
Fee-only financial planning services are provided through Financial Planning Hawaii, Inc, a separate Registered Investment Advisory firm. Financial Planning Hawaii does not take custody of client assets nor do its advisers take discretionary authority over client accounts.
The information contained herein is general in nature. Neither Financial Planning Hawaii nor J.W. Cole provides client-specific tax or legal advice. All readers should consult with their tax and/or legal advisors for such guidance in advance of making investment or financial planning decisions with tax or legal implications.
