Bruce Claassen

April 1, 2020

The US Treasury Department has finally weighed in with some of their own guidance on the Paycheck Protection Program Loans.  They have made three (3) changes that were effective yesterday, March 31, 2020.

• Term of the loan per the bill signed by President Trump on Friday was 10 years.  The Treasury Dept has changed that to a maximum of 2 years.

• The loan interest rate was up to 4% in the original bill, but is now 0.5%.

• Forgiveness calculation - this is perhaps the most significant change, as they state that the amount calculated as forgiveness will only be forgiven if 75% of that amount is for payroll expenses.

See our complete summary of the Emergency Industry Disaster Loans, and the Paycheck Protection Loan Program here.

Navigating the many aspects of the new legislation is a complicated task.  Give us a call if you have questions or would like assistance.