6.5 COVID-19 Bulletin: Paycheck Protection Program Update

UPDATE: Paycheck Protection Program

Congress and President Trump have come together to make significant changes to Paycheck Protection Program loans.

The Paycheck Protection Program Flexibility Act:

  • Extends the loan term from 8 weeks to 24 weeks giving employers more time to rehire employees and qualify for loan forgiveness
  • Lowers the percentage of loan proceeds that must be used on payroll from 75% to 60%
  • Allows PPP recipients to also be eligible for payroll tax deferral
  • Extends the PPP program from June 30 to Dec. 31, 2020

These changes were critical given the inability of many business owners to use the PPP loan funds because of the prolonged economic shutdown of many industries.

Since Congress created the Paycheck Protection Program back in March, nearly 4.5 million businesses have received loans across the country totaling more than $510 billion.  A new poll shows most small businesses are now at least partially open across the United States, but many believe it will take more than six months to recovery economically.

Learn More: Paycheck Protection Program Update

To help Buffalo Niagara employers understand the changes to PPP and what it means for them, the Partnership is hosting a webisode on Thursday, June 10th at 11am.

REGISTER TODAY to get an overview of the changes made to the current program the benefits to your business and some new stipulations that you need to be aware of.

You can also learn more about the PPP by visiting the Partnership’s resource page HERE.

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The Buffalo Niagara Partnership is committed to providing employers with the latest information and resources to help you deal with COVID-19 and its impact on our community, state and nation. Visit our Events and Resource pages as they are updated regularly to provide you with the most current information.

Have additional business questions?  We’ve got answers through the BNP Business Link, our new rapid response portal. Get connected to our team of subject matter experts, supported by expert member companies ready to confidentially answer your pressing business concerns.