On the evening of June 3, 2020, the Senate passed the Paycheck
Protection Program Flexibility Act of 2020. President Trump is
expected to sign it into law soon. As its name implies, the Act
provides PPP loan recipients with significantly more flexibility to
use the funds and receive forgiveness.
The main provisions of the Act:
- Extends the "Covered
Period" in which qualified expenses can be paid and qualify
for loan forgiveness from 8 weeks to 24 weeks, but the Covered
Period cannot extend beyond December 31, 2020. However, borrowers
that received their loan funds prior to enactment may still elect
to use the 8-week period.
- Extends the deadline to rehire
employees and restore pay cuts of greater than 25% to December 31,
2020 from June 30, 2020.
