New Guidelines Available for Farmers Accepting PPP Loans

WASHINGTON, DC – Last week, President Donald Trump signed the new Paycheck Protection Program (PPP) Flexibility Act of 2020 into law. With that, comes a few notable changes for the loans made by local bankers to assist businesses in making payroll and covering expenses during the COVID-19 shutdown. The new law will extend the forgiveness period for all PPP loans to 24 weeks from the date of origination while reducing the minimum amount that must be devoted to maintaining payroll from 75 percent to 60 percent in order to receive forgiveness. The Small Business Administration (SBA) and the Treasury Department have signaled that borrowers using less than 60 percent for payroll costs will still be eligible for partial loan forgiveness. In addition, the maturity period for unforgiven PPP loans approved on or after June 5, 2020, is now five years and previous PPP loans may be extended by mutual agreement of the lender and the borrower.
(SOURCE: American Bankers Association)