On Friday, June 5, 2020, the Paycheck Protection Program (PPP) Flexibility Act was signed into law as a standalone legislation designed to ease current PPP forgiveness requirements. Highlights of the PPP Flexibility Act are as follows:
Extends the window of time that businesses must use the funds:
Relaxes the 75/25 rule:
Rehire exemption: Expands the exemptions related to reduction of employees based on employee availability. The forgiveness amount will not be affected by a reduction in employees if the borrower is:
Extends the loan term:
Extends the deferral period: Provides for the extension of the payment deferral period from six months to either;
Defer payroll taxes: Allows borrowers with forgiven loans to defer payroll taxes.
The Flexibility Act provides small businesses with more mobility on how and when they spend their PPP Loan money. D&S is committed to helping their Client's track PPP Loan expenditures, maintain compliance with SBA guidelines, and apply for loan forgiveness at the end of their covered period.