PPP Update: Forgiveness & Congressional Actions
The Small Business Administration (SBA) has released new information on forgiveness for Paycheck Protection Program (PPP) loans. The application for loan forgiveness can be found here. NPMA published information to clarify the confusion regarding which loans might need to be returned; the article here has more information.
Congress is also discussing changes to the PPP program. The first is allowing 501 c(6) organizations to apply for loans; under current rules they are not eligible. This would allow any small trade associations to apply for loans if they can demonstrate need. NPMA sent a letter to the Hill today supporting this change.
This provision is included in The HEROES Act that passed the House last week. The second change being discussed is changing the amounts that can be spent on eligible expenses and extending the time the loans can be used in. Currently PPP loans can be forgiven provided that up to 25% of expenses are spent on rent, utilities and mortgage and 75% are spent on payroll, and loans run for 8 weeks. Businesses currently shuttered due to stay at home orders have argued that they are spending more than 25% on overhead right now to maintain their leases and utilities and that a longer loan period is needed. There is both House and Senate interest in these changes and a vote is expected sometimes in the next few weeks. NPMA will continue to monitor any changes to PPP and inform NPMA members as soon as any changes occur.