Last night the US Senate unanimously passed the House bill called the Paycheck Protection Flexibility Act and is expected to be signed by the President. The following are the changes to the Paycheck Protection Program (PPP):
- Extends the eight-week period for forgiveness to 24 weeks.
- Payroll requirement of 75% of forgiveness is now dropped to 60%. This change also adjusts this to a cliff, where no forgiveness is given if payroll is under 60% of the eligible funds.
- The date to restore workforce levels to Pre-COVID 19 levels is now December 31 rather than June 30.
- Any amount of the loan being repaid is over five years at 1% rather than two years.
- The bill also allows businesses receiving a PPP loan to also take advantage of the delay in paying payroll taxes under CARES Act.
Full Story: Journal of Accountancy