Paycheck Protection Program Flexibility Act of 2020 Signed by President Trump

Paycheck Protection Program Flexibility Act of 2020 Signed by President Trump

Highlights:

  • The 8-week period for PPP loan expenditures can be extended to 24 weeks. All new PPP loans are subject to a 24 week eligibility and forgiveness term.
  • The 75% payroll requirement reduced to 60%.
  • New deadline to restore the work force – December 31, 2020.
  • Reductions in employee headcount that cannot be reversed or result from certain health and safety restrictions may not affect PPP loan forgiveness.
  • For any new PPP loans, the minimum loan term for the unforgiven amount will be five years.
  • Businesses that have their PPP loans forgiven will no longer be precluded from deferral of payment of certain employer payroll taxes.

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