REMINDER: the deadline for businesses to apply for the Paycheck Protection Flexibility Act of 2020 is Tuesday, June 30, 2020. Below is a link to the application that needs to be completed and taken to your lender to be processed.
If you have questions about the PPP program or any other SBA loan program, the Small Business Development Centers of New Mexico at www.nmsbdc.org or (505) 428-1343. They have experts to consult with you about your current situation and allow you to make an informed decision. You can also speak directly with your community lender.
Regarding Paycheck Protection Program:
Congress passed the Paycheck Protection Flexibility Act of 2020 (June 5, 2020). The Paycheck Protection Program Flexibility Act of 2020 modifies some of the central provisions of the Paycheck Protection Program (PPP), allowing more flexibility for borrowers. The bill increases flexibility and access to PPP loans by providing small businesses more time to spend loan funds and still obtain forgiveness.
The key provisions of the bill to help small business owners are:
- Businesses now have 24 weeks to spend loan proceeds, up from 8 weeks;
- Reduces mandatory payroll spending from 75% to 60%, allowing additional funding for rent/ personal property leases, utilities, mortgage interest, and interest on other debt;
- Extends the forgiveness period from June 30 to December 31, 2020;
- Time to pay off the loan has been extended to five years from the original two years for new loans;
- Borrowers can obtain loan forgiveness and utilize the payroll tax deferral.