With the Flexibility Act, the SBA has implemented some changes to the Paycheck Protection Program (PPP) loan that is GREAT news for designers and other business owners. In this episode of the Wingnut Social Podcast, Aaron Smyle returns to share the changes that have been made and what it means for YOU. Don’t miss this timely episode!

Aaron Smyle has an MBA, MST, and is an Enrolled Agent (EA), a federally-authorized tax practitioner who has technical expertise in the field of taxation. Aaron Launched Smyle & associates in 2010 and serves the NYC area with a special emphasis in restaurants, retailers, creative businesses, medical practices, and law firms. 

• [4:57] What is the Flexibility Act?

• Smyle & Associates

• Wingnut Social Episode 136: CARES Act

If you originally applied for the PPP loan, the terms of forgiveness were hazy and how you could use the money was complicated (Aaron laid out the CARES act and PPP loan in episode 136 if you missed it). Here are the primary changes that have been implemented in the flexibility act: 

1. Originally you had 8 weeks to bring your payroll up to normal numbers/use the funds. Now, the time has been extended to 24 weeks—if necessary—and will end December 31st, 2020.

Currently, you still have until June 30th to apply for the PPP loan. For some business owners, that date is reaching your original 8 weeks. So if you can’t get your payroll numbers up by then, consider extending to the 24 weeks. 

If you haven’t yet applied for the PPP loan because of the repayment terms, inability to operate your design firm, etc. you still have time to apply. The repayment terms are favorable even if you can’t get your loan forgiven. So if you need the funds, there is still approximately $120 billion left in the program (at the time of recording). 

If you’ve applied for and received the loan, you’re probably wondering how to apply for forgiveness. The current application is linked in the resources above. However, Aaron points out that it’s likely to be revised. When banks begin accepting the forgiveness paperwork, you’ll bring the application to the bank you received the loan through. 

You’ll need to be prepared with documentation. Aaron recommends reading over the application so you can begin gathering the necessary information, which may include: payroll reports (quarterly and weekly), proof of differences or reductions in pay, canceled checks, bank statements indicating amounts for payroll, canceled rent checks, etc. 

For discussion about each of these topics, detailed descriptions from Darla and Natalies’ go-to tax professional, and other need-to-know information, tune in to this important episode of the Wingnut Social podcast! 

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• Article Modern Furniture

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