Senate Passes Bill Amending PPP from SBA
The Congress (evening of June 3, 2020) has passed H.R. 7010, The Paycheck Flexibility Act and sent it to the President for signature.
Brief Overview of extended provisions of the PPP Loan Program:
- 8 weeks to 24 weeks, or they can keep the eight-week period
- New borrowers get the 24-week period.
- The 24-week period cannot extend beyond December 31, 2020.
- Term of the loan is now 5 years.
- Reduced the 75% requirement for payroll to 60%. This is now a cliff and at least 60% must be spent on payroll.
- There were exemptions added concerning employee availability.
- Many other provisions extended through December 31, 2020.
As the details emerge, further articles will detail the changes.
Arthur Auerbach, CPA, CGMA is an independent tax consultant located in Atlanta, Ga., specializing in tax consulting and estate and financial planning for individuals and closely held businesses. He is affiliated with the Asbury Law Firm as a consultant.
For up-to-date information on the SBA's PPP, visit our SBA Paycheck Protection Program Page.