The United States Chamber of Commerce has updated its guidelines for the federal Paycheck Protection Program (PPP) loan forgiveness.
The four-page U.S. Chamber “Guide to PPP Loan Forgiveness” has been updated to reflect the substantive guideline changes passed by Congress and then signed into law on June 5.
Among the changes are:
* Extends the time to spend PPP fund from 8 weeks to 24 weeks;
* Lowers the amount that must be spent on payroll from 75 percent to 60 percent;
* Extends the deadline to restore full-time equivalent employees (FTEs) and payroll from June 30, 2020, to December 31, 2020; and
* Sets the repayment term for loans made after June 4, 2020, at five years.
PPP borrowers must apply for loan forgiveness with the lender that processed the loan. This guide is designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.
The guide is available at uschamber.com/sites/default/files/uscc_ppp_forgiveness-guide.pdf.