Information About The Paycheck Protection Flexibility Act

On June 3, 2020, the U.S. Senate passed the Paycheck Protection Flexibility Act ("PPFA"), which was previously passed by the House of Representatives. The President is expected to sign the PPFA into law. The PPFA makes substantial changes to the terms of loans made under the Paycheck Protection Program ("PPP") pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The changes provide substantial relief to PPP borrowers in the form of increased time and flexibility in the use of loan proceeds to obtain maximum loan forgiveness.

The PPFA makes the following changes to PPP loans:

• Extends the Maturity Date for New Loans: PPFA extends the maturity of new PPP loans made after the effectiveness of the PPFA to five years instead of two years. The borrower and lender of an existing PPP loan may mutually agree to modify the terms of an existing PPP loan to extend the maturity to five years but are not obligated to do so.