New Paycheck Protection Program (PPP) Guidance Issued by the Treasury Department
As a result of the PPP legislation signed into law earlier this month, yesterday, Treasury guidance on PPP loan requirements was issued. The Treasury Department clarified that borrowers that use less than 60% of their PPP loan amount for payroll costs will be eligible for partial loan forgiveness. The loan forgiveness period has also been increased from eight to 24 weeks (meaning, businesses may spend the money for six months, instead of two). The bill also allows businesses until the end of the year, instead of June 30th, to rehire employees under program guidelines.
Please Note - This guidance should not be substituted for legal or financial advice. We encourage all IAM member companies to confer with their tax, legal and HR departments prior to entering financial or other legal agreements and similar activity.