Last week the House passed the Paycheck Protection Program Flexibility Act. The Senate has approved the Act and it now heads to the President's desk for signature.
The bill would make several changes to the Paycheck Protection Program (PPP). Namely:
Small businesses would have to spend 60% of the loan money on payroll instead of the current 75%.
Businesses could use the funds for 24 weeks, a change from the current 8 weeks.
The deadline to rehire workers would be extended beyond the current deadline of June 30.
Businesses would be able to push back the timeline for repaying loans (believed to be 5 years from the current 2 years).
Businesses would be allowed to defer payroll taxes even if they have a forgivable loan.
Feel fee to contact us if you have any questions regarding the above or anything else.