The Payroll Protection Program Changes June 2020, as a result of the Flexibility Act, were outlined in a memorandum sent to the Virginia SBDC Network on June 7, 2020. The memo emphasized that over $110 billion remains unspent from the second round of PPP funding, even as the program is set to expire on June 30, 2020. There are expectations for further updates once the U.S. Small Business Administration (SBA) issues their next “Interim Final Rule”. These adjustments are crucial for counselors and clients navigating the PPP forgiveness process, with the blog post noting that the SBA’s interpretation of the law can often vary.
MEMORANDUM
June 7, 2020
TO:
Virginia SBDC Network
FROM:
MD Austin, Access to Capital Counselor
SUBJECT:
Payroll Protection Program Flexibility Act as of 6/7/2020
Overview of Changes
Attached is a first effort to review the changes to the Payroll Protection Program (PPP) that became law on June 5th. Please keep in mind that these changes are based on the reading of the law and does not reflect the implementation of the Act by the SBA and/or the US Treasury. Based on prior guidance from the SBA, the agency took at times a very obscure or unexpected interpretation of the intent of Congress.
Update on PPP Forgiveness
Once the SBA does issue their next “Interim Final Rule” this document will be updated. However, given the widespread interest in the PPP forgiveness process and the impact of the most recent legislative changes, it was deemed appropriate to provide this information to the Network to assist counselors and clients decipher the PPP forgiveness gauntlet.
Program Status
It should be noted that over $110 Billion remains unspent from the 2nd round of PPP funding, and that the program is set to expire on 6/30/2020. Questions remain as to whether this will be extended.
Download Changes
Download a list of changes here.
Question & Answer
What were the Payroll Protection Program Changes in June 2020?
The changes to the Payroll Protection Program (PPP) in June 2020 were outlined in a memorandum sent to the Virginia SBDC Network on June 7, 2020. These changes were a result of the Flexibility Act.
How much money remains unspent from the second round of PPP funding?
Over $110 billion remains unspent from the second round of PPP funding as of the memo sent on June 7, 2020.
When is the Payroll Protection Program set to expire?
The Payroll Protection Program is set to expire on June 30, 2020, according to the information provided in the memo.
