Congress Passes Paycheck Protection Program Flexibility Act Of 2020

On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) (the "PPPFA") was signed into law, amending the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748). The PPPFA modifies the Paycheck Protection Program in the following respects:

• Covered period changed from eight weeks to the earlier of 24 weeks after the loan's origination or December 31, 2020.
  • If a business received a loan prior to enactment of the PPPFA, the business may elect an eight-week covered period.
• Requirement that 75% of the loan proceeds must be used for payroll costs in order for the loan to be eligible for forgiveness reduced to 60%.