On June 6, 2020, Donald Trump signed the Paycheck Protection Program Flexibility Act of 2020 into Law. You can read the entire HR 7010 Bill here. So…What does this mean?

Sec 3 is a big one, there are two big amendments to the original PPP, The extension of covered period increases to Dec. 31, 2020, previously only to June 30, 2020. Another big change, 24 weeks instead of the original 8 weeks. That means that employers can use their PPP money to cover payroll over 24 weeks instead of 8, thus greatly improving their chances of loan forgiveness.

The other huge amendment in the PPPFA is the percentage of funds that are required to be used for payroll in order for the loan to be forgiven. Originally, 75% of the loan had to be used for payroll, now, only 60% needs to be used for payroll. The other 40% can be used to cover mortgage and other business related expenses.

There are additional clauses, changes and amendments in the PPPFA. If you have received your PPP, please consider talking with an accountant. Protecting yourself and your business is paramount. Here is an atricale from The National Law Review that can further help explain HR 7010.

As of last week. It was overheard that there is still 100+ billion dollars left in the PPP fund. If true, and you have not applied for your PPP loan, get on that right NOW!