Paycheck Protection Program (PPP) Flexibility Act:
President Trump has signed the legislation into law. Read the SBA’s press release summarizing its key provisions. SBA, in consultation with the Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP.
Key Provisions:
• Lengthens the loan forgiveness period from eight weeks to 24 weeks.
• Lowers the amount of PPP funds that must be spent on payroll from 75% to 60% and allows 40% for other qualifying expenses.
• Delays employer payroll tax payments through the end of 2020.
• Exempts borrowers from the FTE loan forgiveness reduction if borrowers are unable to return to the same level of business activity as before February 15, 2020, due to Covid-19.
• Lowers the amount of PPP funds that must be spent on payroll from 75% to 60% and allows 40% for other qualifying expenses.
• Delays employer payroll tax payments through the end of 2020.
• Exempts borrowers from the FTE loan forgiveness reduction if borrowers are unable to return to the same level of business activity as before February 15, 2020, due to Covid-19.
NFIB Webinar Tomorrow:
NFIB will conduct a webinar on the Paycheck Protection Program Flexibility Act on Wednesday, June 10th at 12:00 noon.
Submit your questions ahead of the webinar to info@nfib.org.
