Last night the Senate passed by voice vote H.R.7010 - Paycheck Protection Program Flexibility Act of 2020. This bill is now headed to the President to be signed into law.
You can click HERE for an extended summary and full bill text, but a couple high-level highlights include:
· This bill modifies provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection
Program implemented in response to COVID-19.
· Specifically, the bill establishes a minimum maturity of five years for a paycheck protection loan with a remaining balance after forgiveness.
· The bill also extends the covered period during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness.
· The bill raises the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%.
· The bill extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck