Friday morning, President Trump
signed into the Paycheck Protection Program Flexibility Act
which cleared the Senate Wednesday evening via unanimous consent. The legislation will provide additional flexibility for funds distributed, or to be distributed, via the popular Paycheck Protection Program (PPP). Specific changes the legislation would enact include:
- Extending the PPP loan forgiveness period to include costs incurred over 24 weeks after a loan is issued or through Dec. 31, whichever comes first. Businesses that received a loan before the measure is enacted could keep the current eight-week period.
- Extending to Dec. 31 from June 30 a period in which loans can be forgiven if businesses restore staffing or salary levels that were previously reduced. The provision would apply to worker and wage reductions made from Feb. 15 through 30 days after enactment of the CARES Act, which was signed into law on March 27.
- Maintaining forgiveness amounts for companies that were unable to rehire employees or resume business levels as of Feb. 15, or find similarly qualified workers by the end of the year.
- Extending the deadline to apply for a PPP loan to Dec. 31 from June 30.
- Baring the SBA from limiting loan forgiveness for expenses other than payroll.
- Repealing a provision from the CARES Act that barred companies with forgiven PPP loans from deferring their payroll tax payments.
- Establish a minimum loan maturity period of five years following an application for loan forgiveness, instead of the current two-year deadline set by the SBA.