Congress has just passed the Paycheck Program Flexibility Act of 2020. This new Act eases some restrictions on PPP loan funds:
Specifically, the timeline has been extended from eight to twenty four weeks.
The portion of the loan that must be used on payroll has been reduced to 60% from 75%.
The unforgiven portion of the loan has been extended from two to five years.
The deferral period for making payments has also been extended from 6 to 10 months.
This bill still has to be signed by the President so it may change before it is passed in its final form.
Please continue to stay tuned for any changes and feel free to call either of our offices if you have any questions.
Tags: PPP Update
Written by: Doug Rodrigues