The PPP Flexibility Act makes several critical changes to the Paycheck Protection Program (PPP), which was created under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The changes provide relief to many businesses currently using PPP loan proceeds and preparing to seek loan forgiveness within the requirements of the CARES Act.
- The forgiveness period is extended from 8 weeks to 24 weeks (which should almost guarantee that everyone can get the entire amount forgiven)
- The maximum amount that can be used for items other than payroll is increased from 25% to 40%
You can find additional information concerning the PPP Flexibility Act online at National Law Review.