May 29, 2020: Your PPP Loan Forgiveness Cheat Sheet

Gusto Editors

May 29, 2020

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Flex your muscles 

The US House on Thursday voted to make the Paycheck Protection Program (PPP) easier for businesses by altering the following provisions: 

  • Extending the covered period during which funds must be used from eight weeks to 24 weeks 
  • Increasing the percentage allowed for forgivable non-payroll expenses from 25% to 40% 
  • Increasing the loan repayment period from two years to five years 
  • Extending the rehiring deadline for employees from June 30 to December 31 
  • Allowing PPP loan recipients to apply for payroll tax deferments 

However, the bill is currently stuck at the Senate, which isn’t set to reconvene until next week. Most experts agree that there is a bipartisan desire to make the PPP more flexible, but the final bill may end up looking a little different from this one.

For now, hold tight and watch this space. 

Crossing your P-P-Ps 

Last week, the SBA released the PPP loan forgiveness application. It looks deceptively simple at just four pages long—but there’s actually a whole lot of math packed into it. 

Bookkeeper and Gusto contributor Andi Smiles breaks down the application into discrete, easy-to-follow steps and offers a few crucial tips on getting it right, like:

  • Keep two copies of the application open in your browser so you can move back and forth between instructions and the actual forms. 
  • Start with the last section (Schedule A worksheet) first and then move backwards to the first section (PPP Loan Forgiveness Calculation Form).
  • It’ll help to have Gusto’s step-by-step breakdown open alongside, too. 
  • Take a deep breath and dive in. 

Read the piece here

Benefits guidance

We’re continuing our series on the minimum benefits required for employees given the COVID pandemic. Next up: 

You can find the entire series in the “What’s new” section here.

Our top relief options for the week: 

  • The Booz Allen Foundation Innovation Fund
    • This $1 million Innovation Fund helps nonprofits, entrepreneurs, thought leaders, innovators at colleges and universities, and startups and small businesses harness the power of data, technology, and diverse intellectual capital to improve COVID-19 relief efforts and make a difference. Nonprofits can apply for grants of up to $100,000. Individuals, teams, and eligible for-profit organizations can apply for microgrants of up to $10,000. Certain eligibility requirements apply.
    • Deadline to apply: June 5
    • More Information
  • Poise: Bounce Back Grants
    • Poise® Brand is awarding 30 individual grants of $15,000 to help female entrepreneurs bounce back from financial hardships they’ve experienced as a result of the COVID-19 pandemic, 10 of which have already been filled. 
    • Deadline to apply: June 30
    • More Information
  • FedEx #SupportSmall Grant Program
    • Get a $5,000 check as well as a $500 credit for FedEx Office® print and business services to help support your small business. This grant program is open to US-based small businesses that have fewer than 50 employees and have been in business and selling for more than one year. 
    • More Information
  • See more relief options in our small business relief finder.  

On our radar

Want more small business news and resources? Check out past editions in our archive.

Gusto Editors Gusto Editors, contributing authors on Gusto, provide actionable tips and expert advice on HR and payroll for successful business management.
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