The NEW PPP Laws have now taken effect yesterday on June 5th 2020 as President Trump signs off on the PPPFA (Paycheck Protection Program Flexibility Act). The NEW changes give businesses more breaks and flexibility (as the name suggests). So in this video, we're going to break down exactly what those major changes are and how it affects you, as the small business owner who may have borrowed money under the PPP (paycheck protection program). NEW PPP Laws - Here's What you need to know: Article Referenced: https://www.forbes.com/sites/allbusiness/2020/06/05/trump-signs-new-law-relaxing-ppp-rules-what-you-need-to-know/#7635ae0331e3 OUR New Book "0 To 75 Units In 1 Year": https://0to75units.com 0:00 - Introduction 0:59 - Change of Required Payroll Cost PPPFA changes the amount of loan needed for payroll to 60% The PPPFA reduces the amount of the loan needed to be spent on payroll from 75% to 60%, thus increasing the number of funds available for other expenses from 25% to 40%. The law does not change the list of expenses eligible for forgiveness. It still includes rent, mortgage payments, utilities, and interest on loans. 2:36 - Changes From 8 Weeks to 24 Weeks 2. PPPFA extends the time period to use funds from 8 to 24 weeks. This obviously gives businesses more time to be able to use the funds and widens the qualifications for the PPP loan forgiveness. This ultimately means more amounts of the PPP could not be forgiven and less of it would be actually converted into a loan. 4:06 - Deadline Changed For Rehires 3. PPPFA pushes back a June 30 deadline to rehire workers to December 31, 2020. With the old version of the PPP, Small businesses were required to have all workers to be rehired by June 30, 2020, in order for their salaries to count towards forgiveness. Now the new deadline is December 31 2020 4:45 - Easing of Requirement on Rehires 4. PPPFA eases rehire requirements As the intent of PPP was to maintain the same number of employees on the payroll. It required businesses to rehire the same number of full-time employees or full-time equivalents. The law says businesses can still receive forgiveness on payroll amounts if it: - Is unable to rehire an individual who was an employee of the eligible recipient on or before February 15, 2020; - Is able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020; or - Is able to demonstrate an inability to return to the same level of business activity as such business was operating at prior to February 15, 2020. 5:29 - Extension of Loan Term PPPFA extends the repayment term from 2 years to 5 The new law also eases repayment terms in the event loans or portions of them are not forgiven. A business now will have five years at 1% interest to repay the loan instead of the old version of the PPP of 2 years. 6:50 - New Book Offer 😃 Thanks for Subscribing & Liking our Video! 📧 Get Our 1:1 Real Estate Investing Coaching and Mentoring: https://thekwakbrothers.com/thekwakbrothers ⌨️ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com 📊 Pay Off Your Mortgage In 5-7 Years (On Average): https://debtfreeaccelerator.com/video 💻 JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup 📡 PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 🔊 Our Podcast Channels: 📻First Deal Experience: 🔹Spotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B 🔹iTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 📻Landlording Automated: 🔹Spotify: https://open.spotify.com/show/1LTAeRg2ZAT1ATI1mdtWM0 🔹iTunes: https://podcasts.apple.com/us/podcast/landlording-automated-podcast/id1504548975 GET SOCIAL WITH US: 📣Facebook: https://www.facebook.com/thekwakbrothers/ 📣Instagram: https://www.instagram.com/thekwakbrothers/ 📧 Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #ppp #ppploan #pppforgiveness ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.