The Paycheck Protection Program Flexibility Act of 2020

This morning the President signed the Paycheck Protection Program (PPP) Flexibility Act of 2020 (H.R. 7010). This new law provides more flexibility for participants in the PPP loan program, including allowing those participants to defer the payment of certain payroll taxes that the CARES Act prevented them from deferring.

The new law also:

• Allows businesses 24 weeks instead of eight weeks to use the loan money and to have the loan forgiven
• Eliminates restrictions limiting non-payroll expenses to 25% of the loan proceeds
• Eliminates restrictions that limit loan terms to two years; and
• Extends the rehiring deadline

NOTE: This article was updated on June 5, 2020. Because the COVID-19 situation is dynamic, with new governmental measures each day, consult with counsel for the latest developments and updated guidance on this topic.