The Payroll Protection Flexibility Act signed into law

Uncategorized Jun 05, 2020
It's official: On Friday, June 5th, President Trump signed the Paycheck Protection Flexibility Act into law.

What's the PPFA all about? 
The most significant issue affecting business owners was the 8-week timeframe to spend the money from the PPP loan.
Many businesses remain closed, while others must operate at limited capacity. The forgiveness guidelines issued by the SBA made it difficult for those business owners to obtain full forgiveness of their loan. The new bill now extends this period to 24 weeks.

Here are some of the most significant amendments to current law and regulations included in the bill:    
•    Extends the time in which businesses must use the funds from eight weeks to 24 weeks, or December 31, 2020
•    Amends the 75/25 rule to 60/40 for how much businesses must spend on payroll versus non-payroll costs
•    Pushes back the safe harbor deadline to rehire workers from June 30 to December 31
•    Extends the two-year term for the loans to five years
•    Increases the deferral period from six months to 10 months

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