PPP Flexibility Act Update – June 4, 2020 – PENDING FINAL APPROVAL
The Paycheck Protection Program Flexibility Act has passed the House and Senate and is awaiting the final approval by the President before making it into law. Since the passage seems eminent, it was time to look over this for and provide some clarity.
The PPP Flexibility act has done a few major things for PPP holders:
- Changing the 8 week covered period to 24 weeks (max at December 31, 2020)
- Increasing loan terms from 2 years to 5 years
- Additional FTE exemptions for business owners who can’t restore pre-Covid-19 business levels
- Election of new rules or going with original rules
- Deferment of loan repayment until forgiveness ruling
We will await Treasury guidelines and rules for the practical implementation of these rules. But until then, you can review the PPP Flexibility Act here: https://www.congress.gov/116/bills/hr7010/BILLS-116hr7010eh.pdf
Find Small Business PPP Resources here: http://learn.claracfo.com
To book a time to talk about your PPP Loan go here: https://claracfo.as.me/claritysessions
Find us at: https://claracfo.com/
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Clara CFO Group, LLC or its members cannot be held liable for any use or misuse of this content.