Insights

MPL General Counsel Corner – Going Green – Boogity, Boogity, Boogity, Let’s Go Racing!

June 12, 2020

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:

  1. Covered Period for PPP Loans now runs until December 31, 2020, versus the prior June 30, 2020.   You still must apply by June 30th.
  2. 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.
  3. Loan forgiveness coverage period can be 24 weeks, versus the prior eight weeks.
  4. 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.
  5. 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.
  6. 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:

Please see all of our prior updates at the this link or if you would like to be added to our email list, please click here

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com) or anyone in our office with questions or comments.  

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