Practice Management

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

Had one of my doctors call me yesterday about the 245 weeks. As he was saying it, he realize that's 20 years and must've been a typo.

I believe the actual answer is 24 weeks. Still that is a huge improvement along with the change in the percentages.

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

Had one of my doctors call me yesterday about the 245 weeks. As he was saying it, he realize that's 20 years and must've been a typo.

I believe the actual answer is 24 weeks. Still that is a huge improvement along with the change in the percentages.

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans

HHS released several new FAQs on 6/9/2020 which cover the new Medicaid targeted allocation, available HERE.

At this time, HHS has yet to release further guidance on the reporting requirements for recipients of the Provider Relief Fund. 

Additional direction on both the Paycheck Protection Program and the HHS Provider Relief Fund is expected in the upcoming weeks.

At some point...there may be method to this confusing madness.

Honestly, I would have preferred to receive an increase in Medicare reimbursement as this seems to be the general guide for private insurance reimbursements.

But I am only one voice among the possible many who could better spend their time lobbying for at least a reasonable reimbursements as our costs continue to increase - WHICH IMHO IS A LONG-TERM FIX TO THE CONFUSING, CONVOLUTED MEDICAL REIMBURSEMENT MADNESS!

The U.S. Senate approved sweeping changes to the Small Business Administration's Paycheck Protection Program Wednesday evening, making the program's lending terms more favorable to restaurants, retailers and other businesses.

The bipartisan bill, titled the Paycheck Protection Program Flexibility Act of 2020, was passed May 28 by the House of Representatives. Introduced by Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., the legislation extends the eight-week period under which loan recipients can spend the PPP money while also addressing other details that have bedeviled small businesses in the hospitality realm. The Senate version's backers included Sens. Tim Kaine, D-Va.; Thom Tillis, R-N.C.; Debbie Stabenow, D-Mich.; Cory Gardner, R-Colo.; Angus King, I-Maine; and Steve Daines, R-Mont.

The bill now heads to President Donald Trump for his signature.

If signed into law by Trump, the Paycheck Protection Program Flexibility Act would:

• Extend the "covered period" under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
• Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
• Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
• Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent "double dipping."
• Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
• Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
• Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

This bill was not Congress' first attempt to fix aspects of the PPP. The $3 trillion HEROES Act, which passed the House earlier in May, contained a number of PPP fixes, though not just tailored to the hospitality industry. But the legislation, proffered by House Democrats, faces opposition from Senate Republicans.

Business groups, which had supported the Paycheck Protection Program Flexibility Act and its changes, applauded its passage. The National Association of Manufacturers declared it a "lifeline," particularly for smaller manufacturing companies. Under the original PPP loan terms, the covered period was slated to end June 30, even as more than $100 billion of available funding still remained to be doled out.

"As the majority of small businesses reach the conclusion of their Paycheck Protection Program forgiveness period in the next couple weeks, they are figuring out how to comply with the loan terms while also navigating reopening and rehiring their employees in a safe manner," said Kevin Kuhlman, vice president of government relations for the National Federation of Independent Business, in a statement. "The Paycheck Protection Program Flexibility Act of 2020 will further help many small businesses impacted by Covid-19 by reducing the payroll limitation of the program and extending the loan forgiveness period."

If you have utilizing the CARES Act's Paycheck Protection Program, you should be aware that yesterday the House of Representatives passed (417-1; rare bipartisan support), legislation that would amend the PPP program. 

Under this new legislation, employers would have to spend 60 percent-rather than the current 75 percent-of PPP funds on payroll costs. The additional 40 percent could be spent on mortgage interest, rent, utilities and other costs. Employers would also have 24 weeks-instead of eight weeks-to spend the loan proceeds, and they would be able to defer payroll taxes even if they receive loan forgiveness. Currently, employers must rehire certain laid-off workers by June 30 to seek loan forgiveness, but the new bill would extend the deadline to Dec. 31, with exceptions based on employee availability.

The text of the bill is here:  https://www.congress.gov/bill/116th-congress/house-bill/7010/text

The US Senate is now expected to consider the legislation. 

We will keep you updated, as many of you are formulating plans for spending the proceeds and are trying to strategize how to best operate your business and still receive PPP loan forgiveness.  So, this is very significant.  

For now, you may want to stay tuned because this may change/alter some of those plans. 

Howard B. Hoffman, Esq.

Hoffman Employment Law, LLC

600 Jefferson Plaza, Ste. 204

Rockville, Maryland 20852

(301) 251-3752

(301) 251-3753 (fax)

www.hoholaw.com

The new legislation loosens some of the restrictions on the loans that businesses found too burdensome given that many are still closed or operating at reduced capacity due to prolonged stay-home orders.

The legislation extends the time to use the loan from eight weeks to 245 weeks and gives businesses more time to pay back loans beyond the initial two-year term. The bill eliminates the cumbersome 75/25 restrictions that said businesses must spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities. The formula changes to 60/40 percent.

The changes also allow businesses to receive payroll tax deferments even if they use the PPP loan program and gives businesses a break from the requirement that it must rehire its employees by June 30, 2020, in order to receive loan forgiveness.

https://www.foxnews.com/politics/house-passes-legislation-to-give-small-businesses-more-flexibility-with-ppp-loans