Paycheck Protection Program Flexibility Act
Congress recently passed the Paycheck Protection Program Flexibility Act which relaxes some of the rules regarding how small businesses can utilize their PPP funds. The Act allows for an extended period of 24 weeks to utilize the funds and has been adjusted to require 60% of the funds (as opposed to the original 75%) be utilized for payroll. For those borrowers who received their loan prior to June 5, 2020, they may elect to use the original 8-week covered period length. More guidance on applying for forgiveness is expected to be forthcoming from SBA in the coming weeks.
The Paycheck Protection Program resumed accepting applications July 6, 2020. Small business now have until August 8th, 2020 to apply for assistance.