Yesterday, the U.S. Congress passed H.R.7010, Paycheck Protection Program Flexibility Act of 2020, The passed measure, which IAAPA has been advocating for on behalf of the industry, importantly adds much-needed flexibility to the Paycheck Protection Program (PPP). Specifically, the bill:
- Allows forgiveness for eligible expenses beyond the 8-week covered period to 24 weeks
- Expands forgivable non-payroll eligible expenses from 25% to 40% of loan proceeds
- Permits the restructuring of existing loans from two years to up to five-year terms
- Ensures full access to payroll tax deferment for businesses that take PPP loans.
- Provides a rehiring safe harbor for businesses unable to rehire employees due to the effects of enhanced Unemployment Insurance
- Extends the deadline to apply for a PPP loan from June 30 to December 31, 2020
The bill now goes to President Trump, where it is expected to be signed into law. Thank you to all IAAPA members that have taken action and contacted your elected officials. Your efforts continue to make a difference.