Paycheck Protection Flexibility Act of 2020
The Paycheck Protection Flexibility Act of 2020 has relaxed some of the requirements regarding forgiveness loans of the Paycheck Protection Program. The bill is expected to signed by President Trump soon. Below is a brief overview.
- Borrowers have the option to extend the original eight week period to 24 weeks.
- The payroll requirement would be 60% compared to the original 75%.
- The employer has an extension period regarding the reduction of workforce.
- The repayment period has been extended to five years.
- The two year deferral of employer’s share of payroll taxes for all employers.
For a summary of the bill, click here. For more information, borrowers should contact their lenders.