As expected the House passed the Paycheck Protection Program Flexibility Act of 2020 this afternoon (5/28). The Senate is expected to take up the bill next week.
Highlights from the House Bill:
Covered Period - Extended from 8 weeks to 24 weeks
Payroll Spend Rule - Rule changed from 75% to 60%
Loan Maturity - Extended from 2 years to 5 years
New Headcount Exemption - “Exemption Based on Employee Availability”
If you are unable to restore your headcount by 12/31/20 and can document it is related to several specified reasons in the Act, your forgiveness will not be impacted
Forgiveness Application Deadline - 10 months after the last day of the covered period
Deferred Employer Payroll Taxes - Businesses received loan forgiveness can defer certain employer payroll taxes
We do not expect the Senate to rubber stamp the House bill. Stay tuned for more updates related to these potentially significant changes to the PPP Program.