Paycheck Protection Program Flexibility Act

What is the Paycheck Protection Program Flexibility Act?

The Paycheck Protection Program Flexibility Act of 2020 (PPPFA), signed into law by President Trump June 5, 2020, amends the Paycheck Protection Program (PPP) to give borrowers more freedom in how and when loan funds are spent while retaining the possibility of full forgiveness.

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 PPP Flexibility Act amends the Paycheck Protection Program to give borrowers more time to spend loan funds and still obtain forgiveness.
  • Borrowers now have 24 weeks to spend loan proceeds, up from 8 weeks.
  • The Act also reduces mandatory payroll spending from 75% to 60%.
  • Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
  • Changes made by the PPPFA have been incorporated in new forgiveness applications released by the SBA.
  • Time to pay off the loan has been extended to five years from the original two.
  • The Act now lets businesses delay paying payroll taxes even if they took a PPP loan.

**Updated 3/19/2021** 

The Paycheck Protection Program is now available through March 31. 

There is a bill in the Senate right now that will extend the next round of PPP to May 31st