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Relief is coming: Paycheck Protection Program Flexibility Act moves forward, 6.4.20
Updated June 5, 2020
The president on June 5 signed the Paycheck Protection Program (PPP) Flexibility Act into law. The House of Representatives passed the bill the previous week, and the Senate passed the bill June 3.
The bill makes a number of significant changes to the PPP, according to the American Hotel & Lodging Association. Changes include:
- Changing the forgiveness period for PPP loans from eight weeks to 24 weeks
- Extending the covered period for loans to Dec. 31, 2020
- Changing the restrictions limiting non-payroll expenses from 25% to 40%
- Changing the loan maturity limit from two years to five years
- Ensuring full access to payroll tax deferment
Important! PPP loan holders will need to contact your lenders to get an extension from the June 30 deadline.