Contractors now have more time to receive PPP funding to recover from the impact of COVID-19.
Congress announced that there are new terms on PPP loan forgiveness and has extended the time period to use up the loan. According to an April NRCA survey, these new terms and conditions would apply to at least 40% of contractors who have been granted a PPP loan. According to an April NRCA survey, the construction industry accounted for $44.9 billion of total PPP funds, the largest percent of approved dollars.
The new legislation would extend the original eight-week spending period to 24 weeks. The deadline for the PPP program would also be extended from June 30th to December 31st. The legislation also reduces payroll to non-payroll costs to qualify for forgiveness from 75%/25% to 60%/40% and extends loan repayments from 2 years to 5 years. Additionally, employers can now defer payroll taxes for receiving PPP loan forgiveness.
Currently, around $130 billion remain for PPP loans. Duane Musser, NRCA’s vice president of government relations, suggested contractors document everything being spent using their PPP loans and to consult with an attorney or accountant to ensure the process is being documented correctly.
Don’t miss your chance to get approved for a PPP loan, you can still apply and get approved! If you have any questions regarding the Payroll Protection Program, you can view our blog answering FAQs here and get a thorough walkthrough on how the PPP can help your business here by an SBA expert here.
For additional guidance getting through these uncertain times, check out our Contractor’s Survival Guide.