Last night the House of Representatives passed H.R. 7010 (Paycheck Protection Program Flexibility Act of 2020) by a vote of 417-1. The Bill proposes to loosen the requirements of loan forgiveness under the Payroll Protection Loan by:
1. Extending the time borrowers have to use PPP loan proceeds from 8 weeks to 24 weeks;
2. Reducing the amount that must be used on payroll costs from 75% to 60 %;
3. Extending the deadline to rehire workers from June 30 to December 31, 2020; and
4. Providing a safe harbor exemption that allows loan forgiveness to be calculated without regard to a reduction in full-time equivalent employees, if the employer is able to document:
a. an inability to rehire individuals who were employed on February 15, 2020
b. an inability to hire similarly qualified employees for unfilled positions before December 31, 2020.
This Bill is now on to the Senate for markup and voting. With any luck, we should have an agreed upon Bill ready to be signed by the President by the end of next week.
Written By Nathan R. Olansen
Nathan R. Olansen is a Shareholder in the law firm of Midgett Preti Olansen. His practice is focused on estate planning, probate and trust administration, IRS and state and local tax audit and tax collection cases, as well as individual and entity tax planning, asset protection and a variety of related transactional matters.
Latest Resource Articles
-
Are Powers of Attorney Responsible for Medical Bills?
According to a Genworth’s 2021 Cost of Care Survey, the reported average cost of assisted li… -
Top Reasons for Disputing a Trust in Virginia
A trust is a valuable tool for saving your loved ones from the probate process and reducing … -
Are You Responsible for the Payment of Your Deceased Spou…
After the death of a spouse, the surviving spouse will inevitably receive bills from hospita… -
Know the Signs of an Employee Retention Credit Scam
If it sounds too good to be true, it probably is. The IRS has sounded the alarm repeatedly r… -
Can a Trustee Sue a Beneficiary?
When you are named the trustee of a trust, it comes with responsibilities you need to be pre… -
Understanding Intestate Succession and What It is
According to a survey by WealthCounsel, more than one-third of Americans have experienced or… -
What is the Difference Between Intestate and Testate?
A last will and testament allows you to direct what happens to your assets after you die. Th… -
Can a Beneficiary Have Money Withheld by a Trustee?
Are you a beneficiary of a trust? If so, you may spend a significant amount of time waiting … -
How Long Do Creditors Have to Make a Claim Against an Estate
Many people assume that creditors have one year from the date of death to make a claim again…
