On Friday, June 5, President Trump enacted the Paycheck Protection Flexibility Act, bipartisan legislation which provides much-needed flexibility to small business owners seeking relief from the U.S. Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP). Eligible small business owners that receive PPP loans will now enjoy flexible terms and conditions that allow for greater access to capital and elimination of unfavorable stipulations, for example. The legislation will:
- Allow forgiveness for expenses beyond the 8-week covered period for eligible loans
- Eliminate restrictions limiting non-payroll expenses to 25 percent of loan proceeds
- Eliminate restrictions that limit loan terms to 2 years
- Ensure full access to payroll tax deferment for businesses that take PPP loans
- Extend the rehiring deadline to offset the effect of enhanced unemployment insurance
For more information on the various COVID-19 relief measures for business continuity, please visit SIA’s Resources for COVID-19 and Business Continuity page.