The Paycheck Protection Program (PPP) has been plagued by changes and hiccups from the beginning, but a new Paycheck Protection Program Flexibility Act that was just signed into law aims to give small business owners more flexibility in how they can use PPP funds, more time to spend the funds, as well as an easier process for qualifying for forgiveness.
If you were unsure about whether or not a PPP loan was right for your sign shop, now may be a good time to apply while funds are still available. In fact, you always have the option to decline the loan or pay it back without a prepayment penalty, if you determine it’s not right for you.
On Nav’s blog, Gerri Detweiler discusses seven different ways the new Paycheck Protection Program Flexibility Act can benefit your sign shop, including by providing more flexibility to use the money for non-payroll expenses.
Previously, guidance from Treasury and the SBA limited forgiveness for non-payroll expenses to no more than 25% of the forgiven amount. At least 75% of PPP loan proceeds had to go toward payroll and payroll-related costs to qualify for full forgiveness.
Tith the passage of this new act, to qualify for forgiveness, loan recipients can spend up to 40% of PPP funds on certain non-payroll expenses while at least 60% of the PPP loan proceeds must be spent on payroll and payroll-related expenses. The types of non-payroll expenses that may qualify for forgiveness don’t change. They are still limited to business rent, mortgage interest, and utilities for services or obligations in effect by February 15, 2020.”
To learn about the other six possible benefits to your sign shop—including tripling the time to use the loan, extending the rehiring time period, and providing more flexibility for COVID-19 impacted businesses, visit Gerri’s blog post over on Nav’s site.