COVID-19 Update: Payroll Protection Plan Has Run Out of Funds. Now what?
April 17, 2020
As many people have heard, the Payroll Protection Program (PPP) has run out of funding. On April 16, 2020, the Small Business Administration ceased taking new applications for PPP loans and placed all pending applications in a queue. Congress, both the House and Senate, are negotiating over an additional $250 billion to be committed to PPP. It is a near certainty that some additional funding will be committed to PPP. If you were not able to access the first round, you should monitor the progress of the legislation and have your PPP application ready to go.
Even if you have previously furloughed or laid off workers, you should not be discouraged from applying for PPP money because you think the forgiveness of the debt may be limited. If the workers were laid off between February 15, 2020 and April 26, 2020, and the workers are rehired or replaced by June 30, 2020, the salary allocated for those workers for the two-month period post hire may still be forgiven. The apparent legislative intent was to encourage businesses to rehire workers at no cost to the business.
We will continue to provide updates as the Congressional negotiations proceed. Please stay safe and feel free to contact us with questions.
Patrick H. Neale
The information provided herein is for informational purposes only and should not be construed as legal advice. The publication of this article does not create an attorney-client relationship between the reader and Patrick Neale & Associates. The reader should not act or refrain from acting based upon the information contained in this article without first contacting an attorney. The hiring of an attorney is a decision that should not be based solely upon advertisements or this article.