Here’s an update on the Paycheck Protection Program flexibility Act of 2020 that was passed. This bill, H.R.7010, brings changes to the program including a longer covered period, new spending threshholds and more.
The main changes in the Act are:
- No penalty if you were unable to rehire / hire similarly qualified positions or unable to return to the same level of business in February 2020 in accordance to guidelines (stay at home orders, reduced capacity, etc.) – also extends rehire date to December 31, 2020
- Two year deferral of employer’s share of payroll taxes for all employers
- PPP loans now have a minimum maturity of five years for unforgiven portions
- Deferral period extended
- The eight week period can now be a 24 week period if borrower elects
You can find information on this pdf file of the PPP information sheet.
