On Friday, June 5, the new Paycheck Protection Program Flexibility Act of 2020 was signed. This new legislation amends the Small Business Act and the CARES Act.
The Paycheck Protection Program Flexibility provides PPP borrowers with more flexibility on PPP loan forgiveness. Here are some of the highlights:
- Gives borrowers the option to extend the “covered period” for loan forgiveness from 8 weeks to 24 weeks.
- Lowers the minimum loan amount required to be spent on payroll from 75% to 60%
- Extends the repayment period from 2 years to 5 years.
- Extends the June 30, 2020 “safe harbor” deadline for companies to rehire employees to December 31, 2020.
We encourage small business owners to be informed on the Paycheck Protection Flexibility Act of 2020 and how it might benefit you.