PPP Update For Business Owners

With new Paycheck Protection Program (PPP) regulations recently signed by the President, Leading Retirement Solutions can help you figure out your next move. This new set of provisions will directly benefit businesses impacted by COVID-19 by reducing the payroll limitation of the existing program and extending the loan forgiveness period.

How can Leading Retirement Solutions help?

Leading Retirement Solutions is already assisting business owners in establishing company sponsored retirement plans to receive qualified contributions from PPP dollars. If you and your team are interested in this approach, LRS is well placed not just to design a plan within your timeframe, but also to ensure you establish the best plan that is truly the best fit for your business. While the PPP requires business owners to take rapid action during 2020, our team will ensure that you have a plan that works for you well beyond this year.

The Paycheck Protection Program Flexibility Act Will:

Extend the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until Dec. 31.
Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
Expand the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
Allow small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent “double dipping.”

Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
Give small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
Extend the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new bill, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

Information courtesy of The Business Journals

Leading Retirement Solutions Update:

Throughout the current pandemic Leading Retirement Solutions has seen many small businesses have to reduce their workforce by as much as 17%. While LRS has continued to employ 100% of our full-time team members, we’re doing what we can to help other companies maintain during this difficult time. We continue to operate normal business hours (Mon.-Fri.; 5am PT-6pm PT) and our team is readily available to support you, your clients, answer phone calls and respond to emails.

How can Leading Retirement Solutions help?

The Paycheck Protection Program Flexibility Act Will:

Leading Retirement Solutions Update:

If you'd like to set up a new retirement plan or improve your current one, please give us a call or request a proposal.

Privacy Policy