COVID-19 UPDATE FOR LOCAL BUSINESSES – June 8, 2020

PPP Program Changes Approved

Major changes in the SBA’s Paycheck Protection Program were approved late last week. The SBA will issue revised guidelines shortly. One of our major concerns with the program was the requirement that 75% of loan proceeds be used for payroll, limiting the assistance available to business owners to help with other operating costs. This now has been revised to 60%. PPP funds can now also be used over a 24-week period versus an 8-week period. Changes were also made in rehiring and repayment dates. If the initial loan is not forgiven, the loan repayment term is now five years instead of two. The deadline for PPP loan applications is still June 30th. If you have not yet applied for PPP, the revised program may be worth consideration. Contact your bank or credit union to apply.

See earlier COVID-19 updates at www.schenectadymetroplex.org.