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Paycheck Protection Program Loan and Forgiveness Applications

By June 24, 2020 No Comments

Heartland Payroll continues to support our clients and businesses through these challenging economic times. As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Paycheck Protection Program (PPP) provides small businesses with forgivable loans to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead.

Many Heartland clients have already applied for the PPP loan and received funding through Heartland Capital. Your Payroll Specialist can provide you with a custom report needed for the application. Please note June 30, 2020 is the deadline to apply for a PPP loan.

For businesses that previously applied for a PPP loan and received funding, the Small Business Administration has recently released updated PPP Loan Forgiveness Applications and Instructions. There are now two loan forgiveness application options. Congress recently passed the Paycheck Protection Program Flexibility Act (PPPFA) which made important changes to the loan forgiveness criteria. Some of the main changes to the program include:

  • Extends the original 8-week forgiveness period up to 24 weeks or no later than December 31, 2020.
  • Reduces the minimum percentage of the loan utilized to cover payroll costs from 75% to 60%.
  • Assures that loan forgiveness will not be reduced if the borrower can in good faith document the attempt to rehire former employees or find similarly qualified replacements by December 31, 2020.
  • Extends the minimum maturity date for outstanding balances to 5 years from 2 years.
  • Allows PPP borrowers to take advantage of the employer Social Security deferral option outlined in the CARES Act regardless of if their loan is forgiven.

When you are ready to complete the forgiveness application, your Payroll Specialist can provide resources and step-by-step instructions to ensure you have the data needed to complete the loan forgiveness application and worksheet. You can also visit the Heartland Employer Situation Room for more curated resources to help businesses navigate the coronavirus pandemic.