Tax Savings Tips - June 2020
Nine Insights into PPP Loan Forgiveness for the Self-Employed When you are self-employed with no employees, the Paycheck Protection Program (PPP) is a COVID-19 gift designed to help you get through this pandemic. If you now have your PPP funds, we have identified nine insights for you. 1. New Law, Enacted June 5, 2020, Creates Easier PPP Loan Forgiveness On Thursday, May 28, 2020, the U.S. House of Representatives approved the Paycheck Protection Program Flexibility Act of 2020 by a vote of 417-1. On Wednesday, June 3, 2020, the Senate passed the bill by a unanimous voice vote. The president signed the bill into law on Friday, June 5, 2020. Here are some highlights from this new law: · For a business that currently has a PPP loan—allows the business to extend the eight weeks to 24 weeks or elect to retain the original eight weeks · For those under the 24-week rule—requires that 60 percent of the loan proceeds be spent on payroll ·