PPP Law becomes more Flexible to Assist Businesses with the Repayment and Use of Funds

President Trump signed into law the Paycheck Protection Program (PPP) Flexibility Act, providing small businesses more time and flexibility to use their PPP loans. The bill extends the covered period for loan forgiveness from 8 weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement. Additionally, the bill reduces the requirement that 75 percent of a borrower’s loan proceeds must be used for payroll costs to qualify for full loan forgiveness to 60 percent of a borrower’s loan proceeds. The Treasury Department and the U.S. Small Business Administration (SBA) will issue rules guidance in the coming weeks to address these changes. More information can be found at https://home.treasury.gov/news/press-releases/sm1026.