Hey there GO-HR friends and family!
How are you doing? This year will certainly be a year none of us forget too soon, but we got a little good news last night.
The Senate passed the PPP Flexibility Act last night which means, when it’s signed at the Whitehouse, that you may have added relief on your PPP loan. In a nutshell:
Maturity for any part of the loan that was not forgiven was extended to “a minimum maturity of 5 years.”
Regardless of when you received your PPP loan (round 1 or 2), you should be covered by this change and your lender and you can modify the maturity of the loan to conform with this change.
You now have until December 31, 2020 to use the money from your PPP loan as your covered period (this is probably the BEST news for most businesses that rushed to get the loan but did not get to re-open fast enough to meet the original 8 weeks of the PPP). Rest assured, though. You can still apply for forgiveness if you already met the 8 weeks.
It allows for an exemption based on employee availability. Read section (7)(A) and (B) carefully – documentation will be key!
Changes the terms of how the funds are used (payroll vs. non-payroll) from 75/25 to 60/40 and additional details of how the loan can be repaid, if necessary.
You may now be able to also take advantage of tax credits you previously could not if you had the PPP.
We’ve said it once, twice, several times…work with your accountants, bookkeepers, and CPAs to figure out the best way to take advantage of these changes so you can stay open and thrive. We’re not through this yet, but we’re slowly getting there.
Finally, we would be remiss if we did not acknowledge the other national crises we’re facing – racism and the abuse of power to that end. We have an epidemic taking place on top of this pandemic. Use this opportunity to open dialogues with your employees about what is happening around them. The stress and uncertainty of the coronavirus, along with the protests and violence, are likely causing your team increased concern and anxiety. Bring in professionals to help your team talk about these issues and what they can do to lend their support and resources (protesting), while also staying safe (avoiding violence). As a board member of the Human Resource Association of Central Ohio and as an HR professional, I can connect you with people who can be great facilitators of these conversations.
As always, we’re here if you need us.
Sharon DeLay, MBA, SPHR, SHRM-SCP, CPCC
GO-HR (a dba of BoldlyGO Career and HR Management, LLC)
[O] 614-473-0122 ▪ [C] 614-233-1522