July 30, 2020

The Latest Paycheck Protection Program Update

The forgivable loan program is intended to provide accessible financing to small businesses affected by COVID-19. Below, we’ll review the latest changes that have been made to the program, so that you’re prepared to apply for the Paycheck Protection Program (PPP).

What Your Business Should Know About Recent PPP Changes:

1. Extended Application Deadline

Previously, the PPP application expired on June 30th. However, on July 6th, the SBA resumed application review, and announced a new application deadline. Currently, the PPP loan application deadline is August 8th.

2. Extended Usage Timeline and Improved Flexibility

Now, business owners can extend the length of time in which they can utilize the loan until December 31st, which provides more flexibility on how they can spend it. Most notably, it’s no longer required that employers spend at least 75 percent of their loan on payroll costs. Instead, the most recent bill now states that business owners must spend 60 percent on payroll costs, and the rest can be used for other approved usages. In addition, the expense ratio forgiveness is 75:25.

3. Extended Repayment Period for Future Borrowers

Thus far, 4.5 million small businesses have received a PPP loan, and reports claim that there’s still more than $100 billion available. With the latest update, future recipients can now extend their repayment period from two years to five years. However, business owners that have already received their PPP loan won’t receive an extension.

4. Eliminated Headcount Rule

Because the COVID-19 pandemic continues, business owners in many states are required to follow strict capacity rules. Due to this, PPP recipients no longer must maintain their pre-crisis head counts.

5. Revised Loan Forgiveness Schedule

Now, recipients have 10 months from the last day of the covered period to apply for loan forgiveness. In addition, the forgiveness period for expenses has been expanded to 24 weeks or until the end of the year (whichever occurs first). At this time, money that’s spent in eight weeks from the loan disbursement date is eligible for loan forgiveness.

6. Ability to Defer Payroll Taxes

With the latest PPP funds update, employers can now defer a portion of their payroll taxes, which previously wasn’t allowed.


As business owners work to adapt to their new normal, it’s crucial to have additional financing at their fingertips. Remember, the PPP loan is distributed on a first come, first serve basis, and the deadline is once again approaching. In addition, if the PPP loan isn't right for your business, you may benefit from an Economic Injury Disaster Loan (EIDL). Or, apply for a small business loan to support your business's future. As always, we’ll provide any updates to the deadline, requirements, and stipulations as they’re made available. Good luck!
Editor’s Note: This post was updated for accuracy and comprehensiveness in July 2020.