President Trump signed into law the Paycheck Protection Program
Flexibility Act of 2020 (the PPP Flexibility Act) on June 5, 2020
(the Effective Date). The PPP Flexibility Act amends certain
provisions of the Coronavirus Aid, Relief and Economic Security Act
(the CARES Act), extends the PPP through December 31, 2020 and
provides borrowers of Paycheck Protection Program (PPP) loans
additional flexibility in spending their loan proceeds.
Changes to PPP Loan Forgiveness
The CARES Act provided that borrowers were eligible to receive
loan forgiveness on amounts spent on eligible expenses in the
eight-week period following the date on which the borrower's
PPP loan was disbursed (the Forgiveness Period).The PPP Flexibility
Act extends the Forgiveness Period to 24 weeks, provided that it
may not run beyond December 31, 2020 (the New Forgiveness
Period).
