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.