New law provides more PPP flexibility

President Trump signed into law, legislation which provides businesses with greater flexibility in how they use Paycheck Protection Program (PPP) funds and still have their loans forgiven: H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020.

Specifically, the legislation expands the amount of time businesses have to spend the money from eight to 24 weeks; reduces the minimum that businesses need to spend from 75% to 60% if they want the full loan amount to be forgiven; extends the time period to rehire employees from June 30, 2020 to Dec. 31, 2020 and eliminates rehiring requirements; and clarifies that employers in the PPP program can also benefit from the CARES Act payroll tax delay.

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