UPDATE ON PPP LOAN FORGIVENESS

Hello Everyone,

The last two weeks have been a whirlwind of activity on the financial front. Legislation is still being debated every day with regard to the CARES act and any future stimulus to our economy. 

SAFE HARBOR

In our last update we let you know that all loans under 2 million would get safe harbor under the SBA. This means that the loans will be thought to have been taken in good faith. https://cooleypubco.com/2020/05/13/sba-safe-harbor-ppp-loans/

FORGIVENESS APPLICATION 

The SBA has released a worksheet for forgiveness. It can be downloaded here: https://www.sba.gov/document/sba-form--paycheck-protection-program-loan-forgiveness-application

This application is complex and hard to understand. I will be speaking with a banker tomorrow to get more clarity on this worksheet so I can answer your questions and help you complete your forgiveness application. Once we've gotten our heads around the application I will post a marked up version on our website. As always we will be on hand to answer your questions and concerns. 

NEW LEGISLATION 

In good news, the House of Representatives passed a bill today to ease some of the burdens of the SBA Forgiveness Application. 

"The House bill, called the Paycheck Protection Flexibility Act, H.R. 7010, extends from eight weeks to 24 weeks the time PPP recipients have to spend their funds. The measure also lowers to 60% from 75% the portion of PPP funds borrowers must spend on payroll costs to qualify for full loan forgiveness. That change would allow borrowers to direct more funds to costs such as rent and utilities"

Meanwhile, the Senate is considering some changes, but nothing as generous as the House has passed today. The two halves of Congress will have to come together if small businesses are to see any relief on the current restrictions and deadlines: https://www.journalofaccountancy.com/news/2020/may/house-bill-relaxes-ppp-loan-forgiveness-requirements.html

OTHER RESOURCES FOR LOANS AND GRANTS 

I know some of you haven't gotten any help yet. There are still loans available to apply for. Please reach out if you'd like to start an application and need our help to do so. The City of Austin and a few other municipalities are offering help as well. You can find more here: https://www.bizjournals.com/austin/news/2020/05/06/more-small-business-grant-programs-on-horizon.html

REVATX is here and working for you everyday. Let us know how we can assist you as we continue to navigate these uncertain waters. 

In solidarity,

--Katie and the REVATX Team.