Just as the benefits for the Payment Protection Program (PPP) were about to expire at the end of the month, President Trump signed into law the Payment Protect Program Flexibility Act (PPPFA), giving more leeway to small business owners.
Some of the major changes include:
- PPP loan maturity dates are extended from two to five years
- Businesses have 24 weeks to spend their loans instead of 8 weeks
- Only 60% of the PPP loan now must go towards payroll, allowing businesses to spend 40% on nonpayroll costs
- Extends the deadline to December 31st to rehire all full-time employees and restore wage levels
- Adds exceptions to businesses who cannot fully reopen due to rules restricting business
- Extends the deferral period on the PPP loan until the date the loan forgiveness amount is calculated
- Now allows PPP borrowers to defer employer payroll taxes through the rest of the year
For information about the PPPFA, some good websites are:
As always – let us know if there are any questions we can assist with!