PPP Flexibility Act Clarification (Beltway Buzz, June 12, 2020)

The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what's happening in Washington, D.C. could impact your business.

PPP Flexibility Act Clarification. Buzz readers likely recall that President Trump signed the Paycheck Protection Program (PPP) Flexibility Act into law last week. One of the prominent features of the legislation lowers from 75 percent to 60 percent the requirement of the amount of the loan that the borrower must spend on payroll costs. On its face, the new legislation does not appear to offer borrowers any loan forgiveness if they do not meet this new 60 percent threshold (even if they spent, say, 59 percent on payroll). However, a statement issued this week by U.S. Department of the Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza explains that forthcoming regulations will clarify that partial loan forgiveness may still be