Congress recently approved a bill to add more flexibility to the Paycheck Protection Program. Instead of the original eight week period, borrowers now have twenty-four weeks to disperse their loan funds in order to have them forgiven. In addition, the amount of money that must be directed towards payroll has been reduced from 75% to 60%. The remainder can be used for expenses such as utilities, rent, or mortgage interest. Independent contractors and self-employed will have an amount equal to twenty-four weeks of their 2019 net earnings with a cap of $15,385 forgiven. Under this new bill PPP borrowers will have until the end of the year to use their funds, but the program is only accepting new applications until June 30th.
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