Updated on Thursday, June 25th, 2020
Following the second round of Paycheck Protection Program (PPP) loans, the Small Business Administration and Treasury Department released a workbook and shared advice to help small businesses navigate some of the updates to the program. The guidance specifically helps lenders and borrowers begin the process of having PPP loans converted into grants, which would mean that loans are forgiven.
The most important takeaway is the emphasis on the 75/25 rule, which means that the amount of the loan used for non-payroll expenses cannot exceed 25%. If companies fail to follow this guideline, they will face increased scrutiny and, likely, an audit. Additionally, while all companies that took under $2 million will have been considered to have made the certification in good faith, those taking over $2 million will also likely be audited.
We have updated the resources below to reflect this new information. If you have any further questions or if our association can assist you in any way, please contact Conner O’Brien at firstname.lastname@example.org
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