Today, President Trump signed H.R. 7010, the Paycheck Protection Flexibility Act into law. The legislation makes a number of retroactive improvements to the Paycheck Protection Program.
Components of the legislation include the following:
- Changes the forgiveness period for PPP loans from 8 weeks to 24 weeks;
- Extends the covered period for loans to December 31, 2020;
- Changes the restrictions limiting non-payroll expenses from 25% to 40%;
- Changes the loan maturity limit from 2 years to 5 years, and;
- Ensures full access to payroll tax deferment.
Please note that June 30th is still the deadline for those who have not yet had a PPP loan processed to be issued one, so speak with you lender right away if you are interested.
The National Restaurant Association has provided an analysis for how the bill would change PPP for current users, and that document can be found here.