PPP Forgiveness for DreamSpring clients

Update June 9, 2020
On June 5th, the federal government passed the Paycheck Protection Program Flexibility Act (PPPFA) with the intention of making it easier to have your PPP loan forgiven.
Update October 1, 2020
DreamSpring is not accepting forgiveness applications at this time. It is possible that congress may pass new legislation that would significantly reduce the requirements for or even eliminate the need for an application for forgiveness. However, we are preparing for the possibility that new legislation is not passed and every borrower will be required to submit an application. We will be in touch with clients via email when we have an update on the forgiveness process.

Overview of the changes:

Updates from the SBA
What this means for you and your business
Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
You have more time to use the loan funds for eligible expenses and gather documentation.
Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
You have a bit more flexibility for how you can use the loan funds and still have the loan be forgiven.
Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
Even if you reduce the amount of employees you reported on your PPP Borrower Form 2483, it is even more likely that most or all of your loan will be forgiven by the SBA depending on the specifics of your situation.
Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and
Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
You have more time to use the loan funds for eligible expenses and gather documentation.
The law has been enacted, however, the Small Business Administration (SBA) must now write up new detailed guidance and release an updated loan forgiveness application. DreamSpring will not be processing forgiveness applications until these rules are finalized.
NOTE for Sole Proprietors, Independent Contractors, Self-Employed individuals with no other employees:
Documentation of payroll expenses: You will not be asked to provide a payroll report or payroll tax filing paperwork. You do not need to provide receipts for use of the loan funds on any personal expenses.