Covenant Services

The Senate has passed and the President is expected to sign the Paycheck Protection Program Flexibility Act. The legislation changes the rules surrounding the forgiveness of the PPP loan program among other key provisions.  Following is a summary of the legislation’s main points compiled by the AICPA:  Current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. New PPP borrowers will have a 24-week covered period, but the covered period can’t extend beyond Dec. 31, 2020. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness. Under the language in the House bill, the payroll expenditure requirement drops to 60% from 75% but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds a...

As you might have heard, the Paycheck Protection Program (PPP) ran out of funding on Thursday, April 16. While it is a good thing that many of our clients have been able to receive aid, several have not, as I'm sure many of your friends who own businesses haven't. Congress is considering a bill that will add more than $200 billion dollars to this program, but the Senate adjourned yesterday without completing action on the bill. We have sent a letter to Congress and we’re working with NAPEO, our trade association, to urge Congress to act at once to fund this program. I’m asking that you contact your Senators and Representative as well. I’ve drafted a sample letter you can use. Please fill in the blanks where appropriate and feel free to personalize the letter with your own company details. You can find contact information for each Senator here ( https://www.senate.gov/senators/contact ) and Representative here ( https://www.house.gov/representatives ). Small business is the ba...