After much advocacy by businesses across the country, President Trump has signed a bill that includes key changes to the Paycheck Protection Program (PPP) to grant more flexibility for businesses to meet the program’s repayment requirements. Key changes include:
- the 8-week period that businesses have to restore staffing levels to pre-pandemic levels is expanded to the earlier of 24 weeks or December 31, 2020;
- the rule that businesses must spend 75 percent of their loan on payroll has been changed to 60 percent. The remaining 40 percent can be spent on other forgivable expenses without reducing the forgivable amount of the loan;
- loan terms extended from two years to five years;
- program availability is extended from June 30, 2020, to December 30, 2020;
- clarifies the ability of PPP recipients to take advantage of employer-side payroll tax deferrals established in the CARES Act.
Read more about PPP repayment requirements here.
Improving the repayment requirements of PPP has been a key priority and this is a welcome relief for our member businesses. We are hopeful that you will help spread the news about these welcomed changes to your members if you have not already.