U.S. Senate Approves Paycheck Protection Program Flexibility Act – What It Means For Your Practice

Posted on June 5, 2020 by
Posted in General

On Wednesday, June 3rd, the U.S. Senate unanimously approved the Paycheck Protection Program Flexibility Act to amend rules of the SBA’s PPP loans. Once signed into law, small businesses will have more flexibility and additional time to use funds.

The bill includes severalchanges to the program including:

  • Extending the timeframe to use funds to 24 weeks (before businesses had eight weeks)
  • Decreasing the required amount of funds businesses needed to use on payroll to 60%, rather than 75% as well as defer payroll taxes
  • Business owners now have until the end of the year to rehire employees in order to qualify for full forgiveness
  • Repayment terms were also extended to five years, rather than two*

*The 1% interest rate on the loans remains the same

For more information on PPP loans, visit:

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

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