Congressional changes are making it easier to convert PPP loans to grants. Important changes include:
- Extending the loan period from 8 weeks to 24 weeks or December 31, 2020, whichever comes first. If you already have a PPP loan, you can use the original 8-week period.
- Extending safe harbor provisions so organizations have until December 31, 2020, to restore wages and your FTE count to February levels.
- Reducing the percentage you have to spend on payroll costs to 60%.
- Providing new safe harbor provisions related to maintaining staff levels.
While these changes will make it easier to use the entirety of the PPP loan funds, it is important to remember that the SBA will still create new regulations to implement these changes. This could mean that a new version of the application for forgiveness will not be available for several weeks. We will continue to monitor these changes and update our PPP Loan Forgiveness Guidance.
Loan forgiveness webinar
Join us for a webinar on Thursday, June 25 from 11:30 a.m. – 12:30 p.m. (PST) on interpreting the new rules and forgiveness application process.
Free assistance and tracking tools
501 Commons has secured a foundation grant that allows our Financial Services team to provide FREE consultations and technical support to help organizations in Washington and Oregon monitor their expenses and FTE counts, and apply for the loan to be forgiven.
Send your finance manager a link to our PPP Loan Forgiveness Guidance where they will find a slide deck on PPP Loan Considerations and recently updated workbooks that help you track eligible expenses, FTE accounts, and estimate how much of your loan can be forgiven and if you are meeting the requirements for maintaining your FTE count.
It’s not too late to apply!
If you have not applied for a loan and would like to apply now that more organizations qualify to have these loans converted to grants, we can help you apply for a PPP loan and connect you to a lender.