The Paycheck Protection Program (PPP)

The Lastest PPP Announcements

The Paycheck Protection Program (PPP) is an SBA loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Learn more about the program

COVID-19 Relief Bill: What It Means for PEOs & Small Business

December 27, 2020

On December 27, 2020, President Trump signed the omnibus spending bill, the Continuing Appropriations Act, 2021) that included $1.4 trillion to fund the federal government and $900 billion of additional COVID relief.

Paycheck Protection Program Reopens

  • Program reopens for new borrowers. Click here for the recently updated application.
  • Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million. To qualify a business must have less than 300 employees and have had at least a 25% reduction in gross receipts. Click here for the new application.

What are the new Tax Provisions?

  • Expenses paid for by PPP loan proceeds that have been forgiven are now tax-deductible.
  • Paid Sick and Family Leave Credits
    • Extends the paid sick and family leave credits against employment taxes from the Families First Coronavirus Response Act (FFCRA) for three additional months to March 31, 2021.
    • The bill does not extend the FFCRA’s mandate to provide paid sick leave or paid family and medical leave beyond December 31, 2020.
  • Changes to the Employee Retention Tax Credit (ERTC)
    • Makes the ERTC available if the business experienced a decline of at least 20 percent in gross receipts (instead of a 50 percent decline) as compared to the same calendar quarter in the prior year.
    • Repeals the provision denying the ERTC to employers receiving a PPP loan. Instead, mechanisms would be created to prevent the same wages from being used for both PPP loan forgiveness and the ERTC in 2021.
    • Extends the ERTC to apply to wages paid before July 1, 2021 (instead of January 1, 2021).
    • Increases the credit percentage from 50 percent to 70 percent of applicable wages.
    • Increases the per-employee limitation on applicable wages from $10,000 total to $10,000 per calendar quarter. In combination with the increased credit percentage, this would increase the maximum credit per employee from $5,000 to $7,000 per quarter (up to $14,000 for the first two quarters in 2021).
    • Modifies the small employer definition of qualified wages to apply to employers that have 500 or fewer employees (instead of 100 of fewer employees).

Will there be changes to Unemployment Insurance?

  • Unemployed individuals get an additional $300 per week from December 26, 2020 to March 14, 2021.
  •  Extends and phases out Pandemic Unemployment Assistance (PUA), a temporary federal program covering self-employed and gig workers, to March 14, 2021 and extends benefits from 39 to 50 weeks with all benefits ending April 5, 2021.
  • Extends and phases out Pandemic Emergency Unemployment Compensation (PEUC) which provides additional weeks when state unemployment runs out, to March 14, 2021 (after which no new applications) through April 5, 2021.

PPP Forgiveness Loans

October 8, 2020

SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.

Click here to view the simpler loan forgiveness application.

Click here to view the instructions for completing the simpler loan forgiveness application.

Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.

June 17, 2020

As announced in a recent press release published by the U.S. Department of Treasury, the SBA posted a revised, PPP loan forgiveness application implementing the PPP Flexibility Act of 2020.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions of the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.”

EZ PPP Loan Forgiveness Application

PPP Loan Forgiveness Application

Our HR business partners have prepared documents to assist our clients with the Paycheck Protection Program loan process.

Please contact your HR business partner to get the documentation listed below to complete your PPP loan application.

The PPP Loan Forgiveness Webinar Series

Groom Law Group Principal, Seth Perretta provides an update on the latest legislative developments from Capitol Hill. Also in a three-part webinar series, Seth walks us through the various components of the application and shares the latest legislative updates surrounding PPP loan forgiveness from Capitol Hill.

Check out our video to learn more about the Paycheck Protection Program and Loan forgiveness process.  Hear about recently enacted Legislation (Paycheck Protection Program Flexibility Act), new forms, and SBA/Treasury Guidance and issues for employers/borrowers to keep in mind.