New Law: Paycheck Protection Program Flexibility Act
President Trump signed into law today the Paycheck Protection Program Flexibility Act, which addresses many concerns expressed by the business community. The Small Business Administration will need to update their guidance, but here are the highlights:
- Businesses have 24 weeks to spend the funds instead of 8 weeks to be eligible for forgiveness
- 60% must be spent on payroll costs instead of 75% to be eligible for forgiveness
- Rehire date now 12/31/2020 instead of 6/30/2020
- Businesses are now able to defer employer payroll taxes even if they receive a PPP loan; https://www.copelandbuhl.com/deferral-of-employer-social-security-tax-payments/
- The repayment term extends to 5 years for loans that aren’t eligible to be forgiven
There are several changes that still need to be worked out and the SBA will issue new guidance when those are made.
Please contact your Copeland Buhl representative for more information.