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Noel Santos
Emmanuel A. Santos JD CPA, Incorporated
447 Sutter Street, Suite 714, San Francisco, CA 94108
Phone: 415-362-8921
Fax: 415-362-8924
Cell: 415-412-5839
Email: noel@eas-cpa.com
Website: www.eas-cpa.com
Your Business...Your Family...Our Concern
Updated on June 8th - On June 5th, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020, which amends the Small Business and CARES Act. This action provides more time for borrowers to qualify for loan forgiveness and eases the restrictions on how much of the forgivable portion of the loan proceeds must be used for payroll costs. Below are the noteworthy changes that affected the original article:
Specific loan amounts are calculated as two months of a company’s pre-coronavirus average monthly payroll costs plus an extra 25%. The PPP loans have a 1% interest rate and a five-year repayment term, which is deferred for the first six months.
If you reduce your staff or their wages, the rate of forgiveness on your loan lowers – meaning you will be on the hook to repay ineligible funds. Business owners must rehire any laid off employees by December 31 and must keep at least 90% of their original staff on the payroll through at least September 30.
Before applying for the Paycheck Protection Program, consult with your tax advisor to make sure you can feasibly meet all of the requirements within your current business outlook and that you fully understand the rules. Keep in mind that if you are unable to meet every requirement perfectly, your loan may not be forgiven and you will be responsible to pay it back within five years.
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