The CARES Act created the Paycheck Protection Program
(“PPP”), which amended the Small Business Act
(“SBA”) to provide short term loans to companies with
fewer than 500 employees and other companies (such as those in the
restaurant and hospitality industry). Such loans may be eligible
for full forgiveness if used for payroll and other business
expenses and all other statutory requirements are met. The SBA
continues to issue guidance on a rolling basis, which can impact a
company's eligibility for the loan, use of the loan, and the
level of forgiveness.
On May 28, 2020, the U.S. House of Representatives approved a
bill by a bipartisan vote of 417 to 1 called the Paycheck
Protection Flexibility Act, H.R., 7010, which makes it easier for
recipients of the PPP to qualify for forgiveness. Before becoming
law, the bill must be passed by the U.S. Senate and signed into law
by the President. The House bill provides for the following
amendments to the PPP:
