On June 3, 2020 Congress passed the Paycheck Protection Program Flexibility Act of 2020 (the “Flexibility Act”). On June 5, 2020 President Trump signed the Flexibility Act into law. The Flexibility Act modifies several aspects of the PPP loan as designed by the “CARES Act”.  The PPP loan was passed and signed into law on March 27, 2020.

The Flexibility Act includes the following provisions:

• Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks and extends the rehiring deadline;

• Increases the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;

• Extends the program from June 30 to December 31;

• Extends loan terms from two to five years for those loans issued on or after the date the Flexibility Act is enacted;

• Ensures full access to payroll tax deferment for businesses that take PPP loans.

Erik Asgeirsson, CEO and president of CPA.com says, “This bill significantly increases small businesses’ ability to have their PPP loan fully forgiven and will change forgiveness compliance.”

As of June 4, 2020, approximately $120 billion is still available to be loaned.

If you are needing help with your PPP loan application please give us a call. We will be happy to help!