On the evening of June 3, 2020, Congress passed The Paycheck Protection Program Flexibility Act of 2020. This fast-tracked legislation provides small business owners who have received loans through the Paycheck Protection Program (PPP) with more flexibility in using their funds.
The legislation gives small business owners more flexibility by:
Read NAFOA's broadcast about the Act.
- Extending the eight-week period where the funds must be spent to 24 weeks or the end of the year (whichever comes first).
- Increasing the amount of time that businesses have to repay any money owed their loan from two years to five years.
- Lowering the requirement from 75% to 60% of funds that must be used for payroll expenses.
- Pushes back June 30, 2020 deadline to rehire workers to December 31, 2020.
- Provides leeway on loan forgiveness to businesses who are able to demonstrate that they were unable to rehire workers due to safety concerns.