Payroll Protection Program Update: President Signs PPP Flexibility Bill Into Law

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.

PPP Flexibility Bill

On June 5, 2020, the President signed a bill called the Paycheck Protection Flexibility Act, H.R. 7010, into law. The Paycheck Protection Flexibility Act makes it easier for recipients of the PPP to qualify for forgiveness by providing for the following amendments to the PPP: