PPP Application Deadline Extended To August 8

PPP Application Deadline Extended To August 8

Lawmakers recently enacted the PPP Flexibility Act to provide companies more options on how funds are used.

By SEMA Washington, D.C., Staff

The U.S. Congress passed a bill to extend the deadline for businesses to apply for Payroll Protection Program (PPP) loans to August 8. The application deadline was June 30, but the program still has about $130 billion available for lending. President Trump is expected to sign the bill into law. The U.S. Small Business Administration (SBA) has a “Find Local Lenders” page to help locate the nearest PPP lending institutions.

Lawmakers recently enacted the PPP Flexibility Act to provide companies more options on how funds are used. Highlights include:

Loan Amount: PPP loans equal the average of one month’s 2019 payroll multiplied by 2.5 (capped at $10 million).

Amount Forgiven: The SBA will forgive that portion of the loan used to cover payroll, rent payments, mortgage interest, and the cost of utilities for a fixed period-of-time.  As a result of the PPP Flexibility Act, the employer may now choose the covered period, either: (a) 8 consecutive weeks from when the loan was received, or (b) up to 24 weeks from when the loan was received or on Dec. 31, 2020, whichever comes first.

Use of Funds: PPP funds can be used to cover payroll, mortgage or rent payments, utilities and other specified expenses. At least 60% of the amount to be forgiven must be spent on payroll, which includes employee benefit costs for vacation, sick/parental leave, insurance premiums, retirement benefits, and state and local taxes.

Interest Rate and Repayment Terms: The loan interest rate is 1%. Repayments on any amount not forgiven is deferred at least 10 months after the end of the covered period, with a two-year term for loans secured before June 5 and five-year term for loans on or after that date.

Rehiring Workers: Employers have until December 31, 2020 to rehire workers and have their salaries count towards forgiveness.

Payroll Taxes: Businesses receiving a PPP loan may also defer payment of 2020 payroll taxes.

Forgiveness Application: The SBA has created two applications for seeking loan forgiveness, a standard form and an EZ version which requires fewer calculations and less documentation.

EZ Forgiveness Application

Standard Forgiveness Application

For more information: www.sema.org/corona-updates/small-business-administration-loan-info.html.

You May Also Like

House Passes Bill to Stop EPA Emissions Mandate

The U.S. House passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support.

tailpipe-emissions

The U.S. House of Representatives passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support (221 to 197), with five Democrats and each Republican member voting for the bill.

If passed into law, the SEMA-supported bill would prohibit the U.S. Environmental Protection Agency (EPA) from finalizing the agency’s proposed federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32, which intends for electric vehicles (EVs) to make up 67% of all new vehicles sales by 2032. The CARS Act also prevents future EPA motor-vehicle emissions regulations that would mandate certain technologies or limit the availability of vehicles based on engine type.

U.S. House Schedules Vote to Stop EPA Emissions Mandate

The SEMA-supported bill would prohibit the EPA from finalizing federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32.

emissions
Section 301 Tariffs & Circumvention: A Closer Look

There’s buzz suggesting that these tariffs are likely here to stay, possibly with even steeper charges on specific items.

Maine Voters Overwhelmingly Back Right to Repair

Over 80% of Mainers voted “yes” to ensure that they and their repair shops can access vehicle diagnostic tools and data.

AAPEX Keynote: Right to Repair Takes Center Stage

While there are headwinds, Congressional support is moving the REPAIR Act forward.

Right to Repair AAPEX

Other Posts

House Subcommittee Votes to Approve REPAIR Act

The REPAIR Act will now go before the full House Energy and Commerce Committee for consideration.

Bendix Responds to Proposed Safety Measures for Heavy Vehicles

The proposed rules call for electronic stability control systems to meet specific equipment and operational requirements.

Auto Care, Industry Groups Ask CT to Protect the Aftermarket

The new section of a Connecticut law could impose potentially anti-competitive requirements on repair facilities.

Tire-shop-tech
McCarthy: The REPAIR Act Builds Momentum

Paul McCarthy, president of MEMA Aftermarket Suppliers, updated members on progress around Right to Repair.

MEMA right to repair mccarthy