Operators and game center owners who took advantage of the Payroll Protection Program stimulus had eight weeks to spend Uncle Sam’s money to keep employees on staff, while also covering such expenses as office leasing, medical coverage, etc. Now, the covered period has been extended from eight to 24 weeks and instead of the requirement that a minimum of 75% of the loan money needs to be spent on paychecks, that’s been dropped down to 60% if you expect the loan to be forgiven.
According to Forbes, that’s not all. The covered period of the loan now ends Dec. 31 instead of June 30, and your business will not lose any loan forgiveness eligibility if you can show that some employees declined to return to their jobs (i.e. the pre-pandemic headcount is no longer required). Forbes further advises that the payback period for new loan applicants has been extended from two years to a minimum of five for those not seeking (or who are ineligible) for forgiveness.