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Posted on: June 10, 2020

New Paycheck Protection Program Flexibility Act provides small business owners additional relief

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The Primary Changes for the program are: 

  • The PPP Flexibility Act amends the Paycheck Protection Program to give borrowers more time to spend loan funds and still obtain forgiveness. Borrowers now have 24 weeks after the origination of the loan (or by December 31, 2020, which ever is earlier) to spend loan proceeds, up from 8 weeks. 
  • The Act also reduces mandatory payroll spending from 75% of loan proceeds to 60%. There has been no changes to what qualifies as a forgivable expense.
  • Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
  • Borrowers now have more time to pay off the loan; the time has been extended to five years from the original two. The 1% interest rate remains the same.
  • Businesses can now delay paying payroll taxes even if they took a PPP loan.

You can view the full new law here.  

Read the Full new PPPFA Law Here