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 3, 2020, the U.S. Senate unanimously approved a bill
called the Paycheck Protection Flexibility Act, H.R., 7010, which
makes it easier for recipients of the PPP to qualify for
forgiveness. The bill was previously
approved by the U.S. House of Representatives by a 417 to 1
vote. Before becoming law, the bill must be signed into law by the
President. The bill provides for the following
