Big Changes to the Paycheck Protection Program

Posted June 8, 2020 at 1:39 pm by

Busi­ness­es should take a sec­ond look at the Pay­check Pro­tec­tion Pro­gram (PPP) in light of sub­stan­tial revi­sions signed into law on Fri­day June 5th.

The Pay­check Pro­tec­tion Pro­gram Flex­i­bil­i­ty Act makes sev­er­al major changes to the PPP. These changes may make the pro­gram more attrac­tive to busi­ness­es that had decid­ed against using it and more use­ful to those busi­ness­es that had already received it.

Key points include:

  • Busi­ness­es can spend more (up to 40% of the loan) on non-pay­roll expens­es and still get it forgiven.
  • Busi­ness­es get much more time (24 weeks, end­ing pri­or to Dec. 31, 2020) to spend the loan.
  • Busi­ness­es can wait longer (up to Decem­ber 2020) to rehire workers.
  • Some flex­i­bil­i­ty to the rehir­ing require­ments for busi­ness­es meet­ing cer­tain conditions.
  • Exten­sion in repay­ment peri­od (to 5 years).

Busi­ness­es should review guide­lines as they may change.

The Eco­nom­ic Devel­op­ment Coun­cil (EDC), an islands non­prof­it, encour­ages local busi­ness­es to speak with their banker about what the changes mean for them. Busi­ness­es try­ing to decide whether the PPP pro­gram is right for them may con­tact the EDC (360–378-2906) for free busi­ness counseling.

The EDC thanks San Juan Coun­ty, the Raynier Foun­da­tion, the Town of Fri­day Har­bor, the Port of Fri­day Har­bor, the Port of Lopez, the San Juan Island Com­mu­ni­ty Foun­da­tion, Orcas Island Com­mu­ni­ty Foun­da­tion, King’s Mar­ket, Mar­ket­place, Orcas Island Mar­ket, Walt Corbin, the Orcas Island Com­mu­ni­ty Foun­da­tion, Islanders Bank, Her­itage Bank, and the Wash­ing­ton State Depart­ment of Com­merce for their sup­port of EDC initiatives. 

The Eco­nom­ic Devel­op­ment Coun­cil (EDC) strives to strength­en and diver­si­fy the econ­o­my of San Juan Coun­ty.  We believe a strong econ­o­my builds a strong community.

You can support the San Juan Update by doing business with our loyal advertisers, and by making a one-time contribution or a recurring donation.

No comments yet. Be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

By submitting a comment you grant the San Juan Update a perpetual license to reproduce your words and name/web site in attribution. Inappropriate, irrelevant and contentious comments may not be published at an admin's discretion. Your email is used for verification purposes only, it will never be shared.

Receive new post updates: Entries (RSS)
Receive followup comments updates: RSS 2.0