MPL General Counsel Corner – Going Green – Boogity, Boogity, Boogity, Let’s Go Racing!
Its been a week to digest the PPP Flex Act that was signed into law by the President. The Dept. of Treasury recently issued an updated Interim Final Rule to reflect the changes. As a reminder, here are the major items that are different than the original PPP rules:
- Covered Period for PPP Loans now runs until December 31, 2020, versus the prior June 30, 2020. You still must apply by June 30th.
- Maturity Date for PPP loans is now 5 years for loans made after June 5, 2020. If you have a PPP loan that was issued prior to this date, you and your lender have to mutually agree to extend the term from two years to five years.
- Loan forgiveness coverage period can be 24 weeks, versus the prior eight weeks.
- Deferral period for the PPP principal and interest payment is now 10 months after the end of your loan forgiveness period, versus 6 months prior. Interest continues to accrue during the deferral period.
- To be eligible for full forgiveness, 60% of the loan must be used for eligible payroll costs. If you do not reach this threshold, there are proportionate amounts that will still be forgiven in keeping with the prior rules.
- EIDL loans that have been used for payroll must be refinanced under the PPP loan. Also, if you received any portion of the $10k advance, the amount received is deducted from your approved PPP forgiveness amount (this is the only amount that impacts your PPP forgiveness amount; the remainder of an EIDL is a separate loan).
Stay tuned for more information to come out as the updated PPP rules are applied.
Other than that, here in PA more counties went to the green phase today, including York County. I don’t know why, but when heard we were going green, I kept hearing Darrell Waltrip’s famous saying for the start of a NASCAR race:
Boogity, Boogity, Boogity, Lets Go Racing.
Have a great weekend everyone and we will talk to you next week.
Here are some other things that may be important or relevant for you:
- Covid-19 Impact on Business Value – This is an excellent valuation article by Michael Wolfe at Trout CPA.
- State by State Week in Review – Here are the latest Coronavirus Regulations published by Law360.
- Coronavirus Litigation: The Week in Review – Here are the latest litigation updates from Law360.
- Revised PPP Bill Video Overview – This a quick video pulled together by Matt Garrett, CEO of TGG Accounting (matt.garrett@tgg-accounting.
com); It provides some excellent insight on the PPP changes.
- NFIB Small Business Optimism Index – It looks like things from the small business owner perspective are looking more positive for the States that are opening up.
- Helpful Bankruptcy Updates – Go see the bankruptcy updates from Rob Bovarnick (firstname.lastname@example.org) of Bovarnick and Associates. He is putting out some insightful articles that are important to understand if you are a debtor or a creditor or both.
- Upcoming Webinars and Helpful Resources