Since the passage of the CARES Act and the creation of the Paycheck Protection Program (PPP), borrowers have been vexed by many complicated questions, as well as changing and sometimes contradictory guidance. Foremost among these questions, perhaps, have been the requirements and process around obtaining forgiveness of PPP loans. The PPP Flexibility Act (PPPFA) and recent revisions to the applications for loan forgiveness have answered many questions and addressed some concerns, and the parameters around forgiveness finally appear to be taking shape. However, there continue to be significant ambiguities and subtleties which are critical for PPP borrowers to understand.
In a Parker Poe webinar, Al Guarnieri, Madison Felder, and Dom Lerario addressed:
- An overview of the PPP.
- Key provisions of the PPPFA.
- Requirement on spending at least 60% of PPP proceeds on payroll costs.
- "Covered period" during which PPP proceeds must be used lengthened from eight to 24 weeks.
- New exemptions for reductions in employee headcount.
- New deferment and loan maturity dates.
- Navigating updated loan forgiveness applications.
- Tips for maximizing loan forgiveness and identifying permissible uses for PPP funds.
- Timeline and process for applying for loan forgiveness.
You can watch a replay of the webinar here.
You can find the firm's other COVID-19 webinars and alerts here.