Breaking News: President Trump Signs the Paycheck Protection Program Flexibility Act (PPPFA)
Today, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA) providing more flexibility when using Paycheck Protection Program (PPP) funds and applying for loan forgiveness.
Highlights of the bill include:
- Extends maturity date of loan from 2 years to 5 years
- Extends the covered period for using PPP loan proceeds from June 30, 2020 to December 31, 2020
- Extends the covered period for loan forgiveness from eight weeks to 24 weeks
- Extends the deadline for rehire exception regarding forgiveness from June 30, 2020 to December 31, 2020
- 60% of loan proceeds should be used for payroll costs to receive loan forgiveness (overturning the 75 percent standard)
- Borrowers will also be able to defer payroll taxes even if they receive loan forgiveness
Borrowers should look for additional guidance and rules from the U.S. Treasury Department and the U.S. Small Business Administration.
Savoy will continue to provide updates as information becomes available.
If you have any questions, please contact your Savoy Sales Team