H.R.7010 has been passed. Here are the strucutral changes coming to P.P.P. loans.

By Matthew Lyon

JUNE 4, 2020

On June 3, 2020, the Senate passed H.R.7010, the Paycheck Protection Program Flexibility Act of 2020. Still awaiting signage by the president, this bill brings many changes to the program including a longer covered period, new spending thresholds, a new full-time equivalent calculation, and more

Main Changes In Act

  • PPP loans now have a minimum maturity of five years for unforgiven portions
  • The 8-week period can now be a 24-week period if the borrower elects
  • No penalty if you were unable to rehire / hire similarly qualified positions or unable to return to the same level of business in February 2020 in accordance to guidelines (stay at home orders, reduced capacity, etc) – also extends rehire date to December 31, 2020
  • Payroll cost requirements are lowered to 60% of loan proceeds
  • Deferral period extended
  • Two year deferral of employer’s share of payroll taxes for all employers
You can find more information about the PPP and other SBA-COVID-19 related happenings on our website. We want to get the word out to everyone as soon as possible. We are always here to help.


Diamond Financial Services