This morning, President Donald Trump signed the Paycheck Protection Program Flexibility Act (PPPFA), which addresses the use of funds and extends loan forgiveness.
Important Changes
Borrowers now have 24 weeks from loan disbursement (until Dec. 31) to use their PPP funds (previously just 8 weeks). In addition, the PPPFA provides flexibility in how a business utilizes the funds. In the original legislation, employers were required to put 75 percent of funds toward payroll costs. The PPPFA reduces this 60 percent – leaving the employer an additional 40 percent to be spent on mortgage interest, rent, utilities and other costs.
Employers now have until December 31, 2020 to rehire applicable laid-off workers if they are seeking loan forgiveness.
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The information contained in this document is intended for educational purposes and to provide a general understanding of regulatory events, legislative changes and the law – not to provide specific legal advice.