On June 5, President Trump signed H.R. 7010, the “Paycheck Protection Program (PPP) Flexibility Act,” into law two days after the Senate unanimously adopted the same bill the House of Representatives had passed overwhelmingly the prior week. As reported earlier, H.R. 7010 reduces certain restrictions for borrowers of the small business PPP loan program enacted as part of the CARES Act last March.
These changes include extending from eight to 24 weeks the amount of time for borrowers to spend PPP loan proceeds and still qualify for loan forgiveness, and reducing from 75% to 60% the minimum amount of loan proceeds that must be spent on payroll costs, thus allowing more money to be used for other fixed costs such as rents. In addition, the legislation increases from two to five years the amount of time businesses have to repay their PPP loans, and also allows borrowers to delay payment of payroll taxes if they receive a PPP loan.
(Contact: Robert Dibblee at rdibblee@nareit.com)