Updates to the Paycheck Protection Program

Updated 6/5/2020. For complete information, see our Paycheck Protection Program page.

The following provisions are included the law President Trump signed June 5, 2020: 

  • The 75%-25% breakdown of payroll to non-payroll expenses has been changed to a 60%-40% split. For more information about eligible costs, please see the linked .pdf below.  
  • The 8-week Covered Period has been extended to 24-weeks. Borrowers with pre-existing loans may choose to retain previously authorized 8-week period. 
  • The deferral period now extends until the forgiveness amount is remitted to the lender; or, 10 months after the end of the 24-week period. 
  • Borrowers with forgiven loans can defer payroll taxes. This effectively overrules a prior IRS decision to the contrary. 
  • Expands the safe harbor for rehiring employees by stating that borrowers’ forgiveness will not be impacted by a reduction in the employees if the borrower is able to document an inability to rehire previously employed individuals, new individuals with similar qualifications, or if the borrower is unable to return to the same level of business activity as on February 15, 2020. 
  • Extends the loan maturity minimum to 5-years for all new loans. Any pre-existing loans may be amended to reflect the new maturity terms if the Lender and Borrower mutually agree. 

All provisions, with the exception of the loan maturity minimum apply to new and pre-existing loans. Information is subject to change as more guidance is released. Website and client communications will be updates as new information becomes available. Please contact your banker with additional questions. 

To maintain bottom half of webpage, with the exception of this link, which will be updated as “Paycheck Protection Program Flexibility Act of 2020” and is the attached pdf. 

To maintain bottom half of webpage, with the exception of this link, which will be updated as “Paycheck Protection Program Flexibility Act of 2020” and is the attached pdf. 

For more information, click here.