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More Information on the Paycheck Protection Program Final Rule Available HERE!
Stay tuned for more information on this critical program as it becomes available...
From Friday, April 3, 2020:
PPP Loan Interim Final Rule Makes Important Changes to Program
New Rule Changes Interest Rate, Repayment Period, and More. Read the Final Rule
Late yesterday, the Small Business Administration (SBA) issued an Interim Final Rule regarding the Paycheck Protection Program. The Final Rule contains a number of important changes to the program. These changes include:
- The interest rate on loans made under the program rises from 0.5% to 1%.
- The repayment period for any part of the loan not forgiven is reduced from 10 years to two.
- Not more than 25% of the loan forgiveness amount may be attributable to non-payroll costs.
- Loan payments can be deferred for six months; however, interest will accrue during the six-month deferment period.
- The Final Rule now talks about “full-time equivalent” (FTE) employees. We believe that the calculation of FTE is an employee's scheduled hours divided by the employer's hours for a full-time workweek. For example, if an employer has a 40-hour work week, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs. For more information on how to calculate how many FTEs your practice may have, consult with your lender.
- 1099 contractors cannot be included in payroll calculations, since they may apply for their own loan under the program.
One possible major change that we are trying to confirm: We have seen information that with the issuance of the Final Rule, moving forward, borrowers cannot apply for both an Economic Injury Disaster Loan (EIDL) and a PPP loan. As soon as we are able to confirm this information, we will pass it along to the profession.
We have also been hearing that some financial institutions are only opening the PPP loan application process to current clients, mostly due to the chaotic nature of the rollout of the program.
And, SBA has cautioned that additional guidance is still forthcoming. This is an extremely confusing time, not just for borrowers, but for the lenders themselves, who were given only a few hours to digest the Final Rule before the application process began this morning. Stay tuned for additional information as it becomes available.
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Disclaimer: The Michigan Association of Chiropractors is a professional association advocating for the rights of chiropractors and their patients across the state of Michigan. We are NOT a state agency or regulatory body. We are merely informing our membership regarding what they are allowed to do during this difficult and confusing time. The information we provide during
this pandemic is derived in conjunction with our governmental relations and legal experts, developed after examination of all official releases of information from the State of Michigan and in consultation with said experts and representatives from state government. Please refer to our emails and website for the latest information, free from speculation and the rumors currently circulating in the wake of official state actions. Rest assured that we will continue to advocate for the profession at the highest levels, with the health and well-being of you and your patients, as well as the overall stability of the health care system, foremost in our efforts.
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