The U.S. Senate passed, by unanimous consent, the House Bill 7010, The Paycheck Protection Program Flexibility Act of 2020. The Bill must be signed by the President to become law. The Bill provides more flexibility for small businesses who take out PPP forgivable loans. Some key provisions include:
- Extends the “Covered Period” to spend PPP loan proceeds from 8 to 24 weeks, to December 31, 2020.
- Modifies the 75%/25% (payroll/other costs) spending rule to 60%/40%, allowing for a greater share of forgivable spending on other covers expenses.
- Allows for more time for employers, to December 31, 2020, to rehire workers and not get hit with a forgiveness reduction penalty.
- Borrowers now have 5 years instead of 2, to repay any unforgivable part of the PPP loan.
- Borrowers are able to defer the employer’s share of FICA payroll taxes for 2 years (50%of payroll taxes will be due in 2021, with the remainder due in 2022).
#PPPLoan #PPPForgiveness #CaresAct #SBALoans #OutsideGeneralCounsel #SHCCNJ #SmallBuinsesses #NJBusiness https://www.congress.gov/bill/116th-congress/house-bill/7010/text