President signs Paycheck Protection Program Flexibility Act of 2020 into Law

June 2020

President Trump has signed the Paycheck Protection Program Flexibility Act into law.  This legislation modifies certain provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection Program. Among the changes to the program are:

  • The time in which borrowers must spend loans to have the debt forgiven is extended from eight weeks to 24 weeks.
  • The non-payroll portion of a forgivable covered loan amount is raised from 25% up to 40%.
  • The covered period is extended from June 30 to December 31.
  • The amount of time small businesses must pay back loans has been extended from two years to five years, if they do not qualify to have the loan forgiven.
  • Payroll taxes for businesses that take PPP loans are deferred.

The full text of the Paycheck Protection Program Flexibility Act is available here.  As details become available on the implementation of these changes, LUGPA will further communicate to members about them.  For detailed information about the current PPP and other essential COVID related materials, please visit LUGPA’s COVID-19 Information Hub.