On May 28, 2020 the House of Representatives voted in favor of a bill called the “Payroll Protection Program Flexibility Act”. The bill will now head to the Senate for a vote, likely next week.
The legislation intends to make it easier for businesses to have their Paycheck Protection Program (PPP) loans forgiven by relaxing restrictions.
Some of the highlights of the bill include:
- Extending the forgiveness period from 8 weeks to 24 weeks
- Reducing payroll spending requirements from 75% to 60% of original loan amount
- Extending the current June 30, 2020 deadline to hire back employees
The bill is still under debate, and amendments to its current form are likely. We will be watching the progress very closely so that we may advise you appropriately. PPP loan forgiveness projections will be calculated according to the current guidelines until this bill has been passed by both the House and Senate.
If you have any questions or wish to discuss further, please do not hesitate to contact us.