The Senate has passed legislation that would give recipients of the Paycheck Protection Program more business flexibility.
Here is a summary of the changes:
- Lower to 60% from 75% the minimum portion of the PPP loan that must be spent on payroll costs. Up to 40% may be spent on rent, utilities and other specified non-payroll expenses.
- The amount of time the loan can cover is extended from 8 to 24 weeks.
- The time new PPP loans must be paid back if the amount does not convert into a grant is extended from two to five years.
- The date by which the PPP loan proceeds must be spent is extended from June 30, 2020 to December 31, 2020.
- The application for forgiveness must be made within 10 months after the last day of the covered period.
- The period for applying for a PPP loan is extended to December 31, 2020.
- The safe harbor for replacing FTEs is extended to December 31, 2020, with specific limitations.
Please feel free to contact Cg with any questions.