On Friday, June 5, President Trump signed the Paycheck Protection Program Flexibility Act of 2020, which was passed by the House of Representatives on May 28 and by the Senate on June 3. The bill loosens restrictions on the Paycheck Protection Program (PPP) and allows for changes including the following:
- Extends the covered period from eight to 24 weeks, ending no later than December 31, 2020.
- Reduces the requirement for the covered loan amount to be used on payroll costs from 75 to 60 percent.
- Allows businesses that receive PPP forgiveness to defer payroll taxes.
- Provides additional exemptions based on employee availability.
- Extends the deferral period for loan principal, interest, and fees.
PPP borrowers should continue to watch for additional guidance from the SBA regarding their loan and its forgiveness. If you have questions about your PPP loan or its forgiveness, please contact your HBK Advisor.