Paycheck Protection Program: Update
Last week, the Senate passed by unanimous consent, H.R.7010, Paycheck Protection Flexibility Act of 2020. The bill amends the small business provisions in the Coronavirus Aid, Relief and Economic Security (CARES) to the following:
· Extends the forgivable period from 8 weeks to 24 weeks or the end of the calendar year.
· Adds flexibility to the forgiveness ratio for non-wage expenses from 75% payroll and 25% non-payroll eligible expenses to 60% payroll and 40% non-payroll.
· Establishes a minimum loan maturity of 5 years for the remaining balance after the balance is adjusted for forgiveness. The CARES Act allowed the Treasury Department to set a maturity of up to 10 years; however, the Department set loans at only two years, which was not consistent with congressional intent and would have been very challenging to most borrowers.
· Extends the required period during which an employer may restore wages to December 31st.
· Allows borrowers to defer payments until they receive compensation for forgiven amounts. Those who don’t apply for forgiveness can have 10 months from the program’s expiration to begin making payments.
· Allows for PPP borrowers to also defer payroll tax payments including payment of principal, interest, and fees, until the date on which the amount of forgiveness determined under section 1106 of the CARES Act is remitted to the lender.
This bill does not allow for current PPP borrowers to receive additional PPP funding.
New Hampshire Main Street Relief Fund - Update
Grant Application Filing Period: June 5, 2020 – June 12, 2020
Governor Chris Sununu has authorized the allocation and expenditure of $400 million from the CARES Act Coronavirus Relief Fund (“flex funds”) to provide emergency financial relief to support New Hampshire small, for-profit businesses due to the economic disruption caused by COVID-19.
For a small for-profit business to qualify, they must:
Have submitted a Prequalification Application (by May 29th)
Be a for-profit business
Have its principal place of business in New Hampshire
Have been in operation for at least one year prior to May 29, 2020
Anticipate a loss of revenue for 2020 due to COVID-19
Have total 2019 gross revenues of less than $20,000,000
Not currently be in bankruptcy
Not have permanently ceased operations
In addition, the following types of businesses are not eligible for grants under the Main Street Relief Fund as those businesses are or will be addressed through other programs:
Hospitals or other healthcare providers
Institutions of higher education
Elementary or secondary schools
Farmers, growers, or maple producers
Franchises or national chains
A business where the only employees are owners of the business
Important Dates & Timeline
Announcement of Program Specifics - June 5, 2020
Formal Application Period - June 5, 2020 – June 12, 2020
Deadline to File Completed Application - June 12, 2020
The Main Street Relief Fund is only available to businesses that submitted a Prequalification Application. All prequalification applicants have received an email directing them to the Final Grant Submission web form. All businesses that submitted a Prequalification Application may complete a Final Grant Submission; however, only businesses that meet all of the Main Street Relief Fund grant criteria are eligible to receive an award. No action is required at this time if prequalification applicants do not wish to participate in this program.
The Main Street Relief Fund Grant award amounts will be calculated based on the grant formula determined by using the information provided by small businesses in their Prequalification Applications. The State of New Hampshire is not directing businesses on how to spend the money. Businesses must demonstrate they have experienced or anticipate they will experience a financial loss due to COVID-19 in order to qualify for a Main Street Relief Fund Grant. It is expected that businesses will use the funds to assist in covering their operational costs and legal obligations.
The Final Grant Submission must be completed and submitted by 11:59 PM on Friday, June 12, 2020, using only the DRA web portal.
Complete your Final Grant Submission here : https://gtc.revenue.nh.gov/tap/main-street-relief-fund/_/
It is recommended that submissions be finalized as early as possible before the deadline. Businesses that require assistance from the DRA may contact the Call Center, which is available at (603) 230-5000, Option 0, from 8 AM to 4:30 PM, Monday through Friday.