The U.S. Senate on June 3, 2020, approved H.R. 7010, the
Paycheck Protection Program Flexibility Act of 2020 (Act) on a
voice vote. If President Trump signs the bill into law, the Act
will make a number of notable changes to the Paycheck Protection
Program (PPP).
Below is a summary of key points for current and prospective PPP
borrowers should the Act become law.
Current Borrowers
For current borrowers, the Act:
- Imposes Payroll Cost Requirement for
Forgiveness: The Act imposes a new requirement that
borrowers use at least 60 percent of the PPP loan amount for
payroll costs in order to receive loan forgiveness. This means that
no more than 40 percent of the PPP loan amount may be used on
non-payroll costs such as rent, utility and mortgage interest
expenses.
