PPP Flexibility ActArticles
The much anticipated bill, Paycheck Protection Program Flexibility Act of 2020 was signed into law on Friday, June 5th, 2020. The new law provides for greatly expanded flexibility for PPP debt forgiveness by 1) extending the period during which eligible costs will be forgiven, 2) relaxing restrictions with respect to non-payroll costs, 3) extending the deadline to rehire employees, 4) increasing the loan repayment period for any residual loan value that is not forgiven, 5) enhancing payroll tax deferral options, and 6) providing additional benefits as well.
The changes include:
* 24 weeks to use the funds, up from eight weeks
* 60% of funds must be used for payroll to have the loan forgiven completely, down from 75%.
* Dec. 31 deadline to rehire workers and use funds to qualify for loan forgiveness, extended from June 30.
* Five years to repay, up from two years.
For more information, please contact Robert Johnson.
Click here to see the full bill.