Paycheck Protection Program - NEW!
Flexibility Act of 2020
June 5, 2020
- The PPP Flexibility Act amends the Paycheck Protection Program to give borrowers more time to spend loan funds and still obtain forgiveness.
- Borrowers now have 24 weeks to spend loan proceeds, up from 8 weeks.
- The Act also reduces mandatory payroll spending from 75% to 60%.
- Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
- Time to pay off the loan has been extended to five years from the original two.
- The Act now lets businesses delay paying payroll taxes even if they took a PPP loan.
Click here to read more
The June 30, 2020 application deadline for
PPP loans did not change with this Act.
Summary of Current Federal Programs* - NEW!
Paycheck Protection Program - NEW!
Updates on Forgiveness
June 4, 2020
On May 15, 2020, the Small Business Administration (“SBA”) issued the Paycheck Protection Program ("PPP") Loan Forgiveness Application ("Application"). Although the Application is a helpful step in understanding the forgiveness process, the SBA and Department of Treasury continue to provide guidance and updates.
Click here for recent clarifications
CARES Act Provider Relief Fund
Frequently Asked Questions (FAQs)
- Attestation Process
- Rejecting Payments
- Terms & Conditions
- Publication of Payment Data
- Overview & Eligibility
- Payment Application Portal (DocuSign)
- Determining Additional Payments
- Data Sharing
- Rural Targeted Distribution
- High-Impact Area Hospitals
Click here to download full FAQs
Paycheck Protection Program - NEW!
Loan Forgiveness Application (effective May 15, 2020)
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
GENERAL GUIDANCE ON FINANCIAL SUPPORT
Check back frequently as new guidance is released often.
- Only attest to what you know to be to true
- Document, document, document
- Be specific and date your references in case of an audit that would come a year or more from now
- Chronicle your logic and calculations on what you attested
- Reference your decisions to governmental guidance documents, web pages, FAQs, etc.
- Consider separate bank accounts for support funds to make tracking easy
- Remember money is intended for expenses during the emergency period so be wary of accruals
- When in doubt seek legal counsel
- Be prepared to explain your decisions
STIMULUS PACKAGE UPDATE
CARES Act Provider Relief Fund Application Guide
Congress has appropriated $100 billion to provide financial relief to US healthcare providers in order to help them weather the coronavirus pandemic. Funds are being distributed by the Health Resources Service Administration (HRSA) section of the US Department of Health and Human Services (HHS). The funds are grants and do not need to be repaid.
The following links walk you through the process of requesting or confirming additional funds available from the new tranche. All healthcare organizations are encouraged to check eligibility and apply.
SUSPENDED: Accelerated Payment Program
In light of the CARES Act provider relief funds that are being administered through HHS, the Centers for Medicare and Medicaid Services has announced it is reevaluating its Accelerated Payment Program and is suspending the Advance Payment Program to Part B suppliers.
Pandemic Relief Package
On April 21, 2020, the Senate passed the “Phase 3.5” coronavirus stimulus package that includes new funding for small business programs, hospitals, healthcare providers, and wide-spread virus testing.
The nearly $484 billion package includes:
Paycheck Protection Program
The new package will include $310 billion for the PPP, which offers forgivable loans to small businesses struggling to make payroll.
SBA Economic Disaster Loans
$60 billion will be allocated to SBA’s small business disaster aid program:
HHS Healthcare Providers
Also included in the package is $75 billion for hospitals and healthcare providers under the Public Health Social Services Emergency Fund:
HHS COVID-19 Testing
$25 billion will be allocated generally to both state and federal authorities for widespread coronavirus testing:
CARES Act Pools of Money
Provider Relief Fund
HHS has extended the deadline for healthcare providers to attest to receipt of payments from the Provider Relief Fund and accept the Terms and Conditions. Providers will now have 45 days, increased from 30 days, from the date they receive a payment to attest and accept the Terms and Conditions or return the funds.
HHS plans to make publicly available the names of payment recipients and the amounts received, for all providers who attest to receipt of a payment and acceptance of the Terms and Conditions. You should only attest if you believe the payment you received is consistent with your estimated allocation.
To calculate your estimated total allocation, divide your "Gross Receipts or Sales" or "Program Service Revenue" by 2.5 trillion and then multiply by 50 billion. ((Gross Receipts or Sales) / 2,500,000,000,000) * 50,000,000,000 Calculator
To estimate the amount likely to be received via this portal application, subtract the amount of payments already received from your total estimated total allocation above.
Please do not attest if the payments you have received already exceed your estimated total allocation. Contact the CARES Provider Relief hotline at (866) 569-3522 if you believe that you have received an overpayment.
Additional Funding Timeline
U.S. Small Business Administration
Paycheck Protection Program (PPP) Report: Second Round Approvals from 4/27/2020 – 5/1/2020
See details of how the second round of PPP distributions were made.
FEMA Public Assistance Program - NEW!
Coronavirus (COVID-19) Pandemic: Eligible Emergency Protective Measures
Release date: March 19, 2020
Release Number: FACT SHEET
Consistent with the President’s national emergency declaration for the coronavirus (COVID-19) pandemic on March 13, 2020, FEMA urges officials to, without delay, take appropriate actions that are necessary to protect public health and safety pursuant to public health guidance and conditions and capabilities in their jurisdictions. FEMA provides the following guidance on the types of emergency protective measures that may be eligible under FEMA’s Public Assistance Program in accordance with the COVID-19 Emergency Declaration in order to ensure that resource constraints do not inhibit efforts to respond to this unprecedented disaster.
Click here for list of eligible expenses for FEMA support