Big Changes to the Paycheck Protection Program
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.