UPDATE: Paycheck Protection Program Flexibility Act and Updates
The Paycheck Protection Program Flexibility Act was signed into law on June 5, 2020, making a number of changes to the Paycheck Protection Program that are favorable to small business owners. Here are some of the changes:
An extension of the covered period from June 30, 2020 to December 31, 2020.
A minimum maturity of five years for new loans.
A tripling(!) of the time period, from eight to 24 weeks, during which businesses may spend PPP proceeds on qualifying expenses and receive forgiveness (subject to a maximum end-date of 12/31/2020).
New statutory exemptions for reductions in forgiveness for failing to return to prior headcount.
A requirement that at least 60% of PPP loan proceeds be spent on payroll in order to receive (any) forgiveness.
The ability for small business owners who have PPP loans forgiven to also benefit from the CARES Act-authorized deferral of remaining 2020 payroll taxes.
And here’s an updated overview, also available for you to download as a PDF.
