PPP Loan Flexibility Act
Last evening the Senate unanimously passed the Paycheck Protection Program Flexibility Act following its passage through Congress last week. it will now be presented to the President for signature which we expect to be a formality.
As always the devil will be in the details. We are carefully (and painfully) reviewing the Act so we can get back to you with more insight, but wanted to give you the highlights as they affect all recipients of the loans.
The key new changes would:
• Lower to 60% from 75% the minimum portion of the PPP loan that must be spent on payroll. The rest must be spent on rent, utilities and other business-related expenses.
- Extend from eight to 24 weeks the amount of time the loan can cover.
- Extend from two to five years the time new PPP loans must be paid back if the amount provided doesn’t convert into a grant.
This is great news that should alleviate the pressures that a number of you are experiencing. More to follow.
Partners and Staff