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ARTICLE · 16 JUNE 2020

PPP Loan Program Updates: Enactment Of Paycheck Protection Program Flexibility Act Brings Forgiveness Period, Payroll Cost Threshold, Loan Maturity And Other Changes

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The evolution of the PPP continues. On June 5, the Paycheck Protection Program Flexibility Act, which enjoyed bipartisan support in Congress and includes many changes designed...

United StatesCoronavirus (COVID-19)

The evolution of the PPP continues. On June 5, the Paycheck Protection Program Flexibility Act, which enjoyed bipartisan support in Congress and includes many changes designed to provide more flexibility for PPP borrowers, was signed into law. Highlights include:

  • The new law extends the current eight-week forgiveness covered period to the earlier of (i) 24 weeks from the loan origination date, or (ii) December 31, 2020. Borrowers who have already received PPP loans may elect to use the eight-week period.
  • The new law reduces the payroll cost threshold for PPP loan forgiveness from 75% to 60%, allowing up to 40% of PPP loans to be used for non-payroll costs. (We note that this provision may be changed again out of concern expressed in the Senate that, as written, it could be interpreted as creating a "cliff" disallowing any loan forgiveness if borrowers do not use at least 60% of their loans to cover payroll costs.)

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www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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