PPP Flexibility Act – Changes Are Coming June 4, 2020 COVID-19 Last night the Senate passed the Payroll Protection Program Flexibility Act, the same bill that had been passed by the House last week. It is expected to be signed by President Trump soon. The PPP Flexibility Act includes many important changes to PPP Forgiveness. Here is a helpful article that covers the changes. We anticipate additional guidance on the PPP Flexibility Act in the near future as well. Key Changes To Be Aware Of PPP Borrowers can now choose between an 8-week or 24-week period to spend PPP funds and be eligible for forgiveness. *The covered period cannot extend beyond 12/31/2020. The amount required to be spent on payroll costs has been reduced from 75% to 60%. The remaining funds still must be spent on qualified expenses. Loans can be paid over 5 years instead of 2. To our understanding, this is not automatically retroactive to existing loans, but terms for existing loans may be adjusted at the discretion of the borrower and lender. The deadline to restore FTE counts has been moved from June 30th to December 31st. There are additional changes to the FTE calculation that seem to ease prior requirements. We will be watching for new developments on the topic and we will share pertinent updates via email.
