​In the Braintree Chamber of Commerce’s fourth COVID-19 update, local business leaders learned about recent improvements to the federal Paycheck Protection Program (PPP), as well as phase 2 reopenings facilitated by the mayor’s office.
 
The June 8 video conference was led by Chamber Chair Kim Kroha of Baker, Braverman & Barbadoro, P.C. Here’s the recap:

On June 5, the president signed into law the bipartisan Paycheck Protection Program (PPP) Flexibility Act, which addresses problems with the original PPP loans for small business owners.
 
Representatives from the Massachusetts District Office of the U.S. Small Business Administration (SBA), Bob Nelson and Susan Lourie, led a discussion of the PPP Flexibility Act and other PPP loan information. Margaret Laforest from the Massachusetts Economic Development Office provided additional information on PPP and reopening.
 
Applications: Assistance funds are still available, and new PPP applications must be approved by June 30. SBA has guidance for calculating maximum loan amounts.  

• Any businesses that applied for a PPP loan before March 30 must reapply for Disaster Loan Assistance here to be eligible for the grant (forgivable) portion of the loan.
• The state is processing loan applications more quickly now that the initial rush has passed. If you received a request from the SBA for more information, respond as quickly as possible. Many applications are held up due to missing information (like an account number) or an error.

 
Repayment: The PPP Flexibility Act answered many questions of small businesses related to repayment requirements.

• It extended the payment period from 8 weeks to 24 weeks, and it allows up to 40% of the funds to be used for nonpayroll costs instead of 25% under the original program. There are no regulations created for the act at this point.

• Interest rates remain 1% (any remaining loan amounts not forgiven), but the loan term has been extended from 2 years to 5 years.
• Unlike the initial PPP application, there is no rush for forgiveness, so please take time to consult resources.
• Only costs that were regularly incurred as of February 15, 2020, can be counted for nonpayroll expenses.
• Businesses will not be penalized if they cannot restore operations to February 15 levels due to shutdown orders.

 
Employment issues: Businesses will not be penalized if former employees decline offers to come back to work, or if businesses are unable to find qualified employees.

• It is important to document all offers and attempts to hire and to keep clear employment records.
• An employee risks losing unemployment if he or she refuses to return to work based on fears of COVID-19.

 
For more information, or if you have questions: Contact your local SBA partners for free consultations, and sign up for SBA email notifications on PPP and other programs.