Paycheck Protection Program (PPP) loans were created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 pandemic. PPP loans were designed to be eligible for full or partial forgiveness, if the money is used for qualifying costs such as payroll, rent, mortgage interest, or utilities.
Congress and the Small Business Administration (SBA) have recently loosened some of the restrictions surrounding PPP loans, making it easier to receive forgiveness for some or all of the loans.
MSK & Armanino co-hosted a live webinar on Thursday, June 25th to examine the constantly changing topic and complexity of PPP loan forgiveness. Moderated by MSK Co-Chair Nimish Patel and joined by MSK partner Jean Nogues and Armanino partner John Schweisberger, they discussed:
- Latest developments surrounding the PPP fund
- What to know before you apply (if you haven’t already
- The recent reduction of the payroll cost rule from 75% to 60
- Forgiveness caps for owner-employees and self-employed individuals
- Payback periods
- Time frame for rehiring employees