Senate Passes Paycheck Protection Program Flexibility Act, Sent to POTUS for Signature

Last night, the Senate passed the Paycheck Protection Program Flexibility Act of 2020 which is designed to loosen the restrictions placed on the original Paycheck Protection Program (PPP). This added legislation provides two major changes. The first relates to extending the original eight-week period of the PPP to 24 weeks that business owners have to use the money from the loan and the second changes how the money may be spent. This legislation will become law when signed by the POTUS.

As we wrote last week, some highlights of the bill include:

• Extending the application window from a June 30, 2020 deadline to apply for a PPP loan to a deadline of December 31, 2020.
• An expansion of the loan forgiveness period from eight weeks to 24 weeks.
• Extending the deadline to rehire employees from June 30, 2020 to December 31, 2020.
• For future borrowers only, the Paycheck Protection Program Forgiveness Application would establish a minimum loan maturity period of five years, eliminating the two-year deadline under current SBA rules. This will not apply to borrowers who already applied.

We will continue to update our COVID-19 Business Resource Page and Client News Alerts page as new information is received.

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DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.