H.R. 7010, the “Paycheck Protection Flexibility Act,” which will enhance and improve the Paycheck Protection Program to better ensure American small businesses can weather the COVID-19 pandemic, was signed into law by the president June 5.
Sponsored by Rep. Dean Phillips (D-Minnesota 3), the bill amends the Small Business Act and the CARES Act to modify certain provisions related to the forgiveness of loans under the PPP, to allow recipients of loan forgiveness under the program to defer payroll taxes, and for other purposes.
The bill makes the following changes to the Paycheck Protection Program:
* Extends the loan term from 8 weeks to 24 weeks;
* Lowers the percentage of loan proceeds that must be used on payroll from 75% to 60%;
* Extends the PPP from June 30 to Dec. 31, 2020; and
* For the portion of the loan that isn’t forgiven, the measure extends the loan term from 2 years to 5 five years.
This legislation acknowledges the new needs of PPP small business borrowers. H.R. 7010 eases requirements for non-payroll costs, allow longer repayment periods, ensure payroll tax deferment, and extend the rehiring deadline.
All of these PPP enhancements will help ensure small businesses emerge from the pandemic.
Read the complete text of the Paycheck Protection Flexibility Act.
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2 Comments
How do you sign up for the Payroll Protection Plan (PPP). Could you provide me with the PPP link to the site
Please,
Royce Conway
858-774-2871
ConwayRoyce@Yahoo.Com
It looks like you would contact the SBA