Good news for small business owners: President Trump officially signed the Paycheck Protection Program Flexibility Act of 2020 into law just hours ago.
The bill addresses concerns about loan forgiveness, easing rules around how small businesses can use their Paycheck Protection Program (PPP) funds, and allowing extensions for loan spending and rehiring workers. It’s intended to make PPP loans more accessible by creating more flexible terms for business owners.
The original PPP stated that in order for loans to be eligible for forgiveness, the funds had to be used within an eight-week period, and recipients were required to use at least 75 percent of the funds for payroll costs. According to Forbes.com, the Flexibility Act extends the eight-week period to 24 weeks, lowers the payroll specific spending to 60 percent, and extends the deadline to rehire workers from June 30 to Dec. 31.
Download a Loan Forgiveness application and learn more about the Paycheck Protection Program.