Congress Passes Amendment To Paycheck Protection Program

On June 3, 2020, the Senate unanimously passed H.R. 7010, also known as the Paycheck Protection Program Flexibility Act of 2020 (the "Act"), which amends certain provisions of the Paycheck Protection Program ("PPP") established under the CARES Act. The bill will now be sent to President Trump for signing. The relevant provisions of the Act are as follows:

1. Extension of Deadline to Use Proceeds: The "covered period" for which borrowers may use the loan proceeds and still be eligible for forgiveness was increased from eight weeks after loan origination to 24 weeks after loan origination. Borrowers who have received loans prior to the enactment of the Act may elect the shorter eight-week covered period.