On June 3rd, the Senate passed the Paycheck Protection Program Flexibility Act. The bill now awaits the president’s signature. The bill includes some much needed changes that will help businesses and organizations utilize the funds to meet their needs.
- The covered period is now extended to 24 weeks, up from the original 8 week period.
- The covered period is now extended to December 31, 2020. This extends the safe harbor period to re-hire employees, which will allow flexibility when calculating your FTEs.
- Funds can now be used on up to 40% of eligible non-payroll cost, up from 25%.
- The repayment terms are now up to 5 years, originally 2 years.
- The payment deferral period has been extended so that payments on any unforgivable portion of the loan will not begin until the amount of forgiveness has been determined and payment has been remitted to the lender.
- Recipients must apply for forgiveness within 10 months after the last day of the covered period.