MAJOR UPDATES COMING TO P.P.P.
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