The US Senate unanimously passed the legislation approved by the House that will make changes to the PPP Loan forgiveness rules. Among the highlights are the expansion of the 8-week covered period for the utilization of loan proceeds that are eligible for forgiveness to UP TO 24 weeks. This is a big relief to businesses that were unable to ramp up services and employees in time before the expiration of their original 8-week covered period. It appears to give those businesses having trouble spending it on time some additional time to utilize it for payroll as it was intended and achieve a greater level of loan forgiveness. The act will also allow for greater flexibility in the ratio of the funds usage. The act reduces the minimum usage of loan proceeds for payroll and related expenses from 75% to 60% and increases the amount that you can spend on applicable overhead from up to 25% to up to 40%.

There may be other provisions in this act that we will share upon the passage of the act into law. After the President signs this, and we expect now that he will do so this week, we will provide updates as we have them for anything else that may be pertinent to you.

In addition to this, we have learned that there is a simplified version of the PPP Loan Forgiveness Application in the works for loans under a certain dollar amount (we have no idea yet what this is). We will provide additional information and guidance as it becomes available.


If you applied for an Emergency Injury Disaster Grant, you have more than likely received an email from the SBA containing information on your pre approval for the Emergency Injury Disaster Loan. This loan is not related to the PPP loans and contains no forgiveness provisions. If you desire an actual SBA loan with simplified terms, no prepayment penalties, and a 3.75% interest rate paid back over 30 years, this would be your opportunity to obtain that. If you are considering obtaining this loan and are unsure if your situation may warrant it, please reach out and we can help you with that decision process.

We will continue to update you on all related matters as information becomes available. Rest assured, your trusted advisors here at Phocus are hard at work staying in front of all of these updates and changes as they arise.