Congress just passed the PPP Flexibility Act which modifies some of the original terms of the PPP loan. Click on the link below to see the provisions of that Act:
In summary, the Act:
Makes PPP loans available through December 31, 2020
Extends the period during which PPP loan amounts may be forgiven from eight weeks to 24 weeks (but no later than December 31, 2020)
Broadens safe harbors to avoid reductions in PPP loan forgiveness on account of reductions in workforce or pay
Permits up to 40% of a borrower’s PPP loan forgiveness amount to be due to non-payroll costs, overriding an earlier administrative rule restricting non-payroll costs to, at most, 25% of a PPP loan forgiveness amount
Extends the term to maturity for PPP loans to 5 years for those loans issued on or after the date the Flexibility Act is enacted
Extends the deferral period from 6 months to a period ending on the date on which a borrower’s PPP loan lender is remitted the forgiveness amount associated with that loan
Permits a PPP loan borrower to defer payment of employer payroll taxes.
If you have question, please contact us for further information.
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