New Changes to PPP Loans Signed into Law

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Friday, the Paycheck Protection Flexibility Act was signed into law, making key changes to the Paycheck Protection Program (PPP) loans for small businesses. The new changes include:

  • Reducing the amount of the loan needed to be spent on payroll from 75 percent to 60 percent.
  • Extends the time period to use PPP funds from 8 to 24 weeks.
  • Extends the June 30 deadline to rehire workers till December 31, 2020 and adds exceptions for a reduced employee count in certain situations.
  • Extends the repayment term from 2 years to 5.

You can find more information from the Small Business Administration on the Paycheck Protection Program and loan forgiveness terms.