Existing Client? Login
Congress Passes the Paycheck Protection Program Flexibility Act of 2020
The Paycheck Protection Program Flexibility Act of 2020 provides borrowers with greater flexibility in spending PPP funds without compromising eligibility for forgiveness.
Amendments include:
Extending the minimum loan term for unforgiving PPP loans to 5 years (originally 2)
Reducing the portion of PPP funds that must be spend on payroll costs to 60% (originally 75%) and raising the nonpayroll cost limitation to 40% (originally 25%)
Extending the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness to 24 weeks from the date of origination of the loan (originally 8 weeks)
Permitting borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness
Extending the rehire safe harbor by 6 months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. (Original date was 6/30/2020; new date is 12/31/2020.)
Make sure to speak to your lender if you have any questions about how this new bill may impact your loan.
Marty Thomas
Marty has spent most of the last 20 years developing software in the marketing space and creating pathways for software systems to talk to each other with high efficiency. He heads our digital marketing efforts as well as oversees any technology implementations for our clients. As a partner, Marty is also responsible for internal systems in which help our team communicates with each other and our clients.