New rule means Watertown business owner can now get paycheck protection loan


New federal rules Paycheque Protection Program will affect local businesses. Updates relate to loan terms and remission and who is eligible. A KELOLAND business owner is considering applying now due to a specific change.

Companies now have 24 weeks instead of eight to use their PPP funds.

To receive full forgiveness of their loans, borrowers now have to spend 60% of their P3 funds on salary expenses and can use the rest to pay overheads such as rent, mortgage interest and utilities, against 75%.

The new rules also give companies more time to rehire staff and pay back money that is not forgiven.

But the change that has the most impact for a Watertown business owner is for those who have a crime under their belt.

Watertown ophthalmologist Melanie Weiss had to disclose on the loan application that she had been convicted of a felony in the past five years, even though the drug charges were dropped from her record and the she had recovered her license.

She told KELOLAND News in April: “I was turned down, because of my background. It was sort of a stab in the heart. Wow, I put my life back together and now that is taken away from me too, ”Weiss said on April 13.

Now that PPP rule has been changed to a one-year ineligibility for most convictions.

“I’m just thrilled today because I can apply and hopefully have this funding so I can bring my full-time staff back and resume my activities; as best I can at this point.

Watertown ophthalmologist Melanie Weiss

Weiss reopened his clinic a month ago after being closed for five weeks, but only had funding through the Watertown Development Company to bring back its part-time staff.

However, people with a history of fraud, corruption, embezzlement, or misrepresentation on a loan application or federal aid request are not eligible if convicted within the past five years.

Companies have until June 30 to apply.

New rules for PPPs


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