June 5, 2020: The Senate Just Made the PPP Way More Interesting

Gusto Editors

June 5, 2020

You’re reading Gusto’s COVID-19 newsletter for small businesses. If you’d like these weekly updates in your inbox, you can subscribe here. New to Gusto? Try a free demo today.

Signed and sealed

Today the President signed the Paycheck Protection Flexibility Act (PPPFA), which makes the PPP loan terms, well, more flexible.  

Here are some of most important amendments included in the law: 

  • Loan payback period has been extended from two years to five years. 
  • Loan amount must be used in 24 weeks instead of eight weeks.  
  • Only 60% of the loan must be spent on payroll costs instead of the originally stipulated 75%.
  • Employers who have had PPP loans forgiven can additionally take advantage of the 6.2% social security tax deferral.

The new act includes other provisions, such as loosening the requirements around having to rehire your entire staff. You can read our full analysis here

According to latest reports, there is still $150B left in the PPP fund. The TL;DR here is that if you haven’t applied for a PPP loan, do it now. There’s very little reason left not to. 

A moment of reckoning

America is hurting right now, with racial justice protests across all 50 states. If you’re running a business, chances are high that your employees are struggling with the emotional demands of this moment. So, how should you be showing up for your employees right now? 

Experts agree that the worst thing you can do is not take a stance, or issue platitudes that don’t have any meaning. Instead, you should:

If you’re a Gusto customer, your employees can now contribute a portion of their paycheck to organizations that support racial justice.  

Reopening guidance 

Figuring out how best to reopen your business can be pretty challenging given the high degree of variability between states and counties. However, there are some basics that HR experts agree on. Here are some resources to help you navigate this process: 

We’ll be producing more state-specific guides, so stay tuned for those. 

Our top relief options for the week: 

  • Ohio Minority Micro-Enterprise Grant Program 
    • The $5 million program will provide grants to help businesses owned and operated by minorities and women. Eligible businesses can apply for grants of $10,000 per business on first-come, first-served basis. 
    • More information
  • Back to Business Mississippi Grant Program
    • Governor Reeves announced the launch of the Back to Business Mississippi Grant Program website to help small businesses receive financial support quickly to recover from the economic impacts of COVID-19
    • More Information

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.
Back to top