PPP Flexibility Act Pending
Filed under:Affordable Housing, Construction, COVID Updates, Dental, Family Business, FQHC, Healthcare, Nonprofit, Private Companies, Small Business Services
The House has passed the PPP Flexibility Act and it has now moved on to the Senate for their vote. The Act would have a significant effect on the PPP loan. Below are some of the highlights:
- Extend the covered period of a PPP loan from 8 to 24 weeks and extend the rehiring deadline
- Increase the current limit on non-payroll expenses from 25% to 40% (this would reduce the requirement to use 75% of PPP funds on payroll to 60%)
- Extend the program to December 31, 2020
- Extend the loan terms from 2 to 5 years, and
- Defer payroll taxes for businesses that take PPP loans
The Senate returns the week of June 1st and will most likely pass the Act with some changes of their own. Many are speculating that there is debate about the covered period and whether it will be 24 weeks or 16 weeks.
If you have questions or concerns about how this will affect you and your situation, then you should consult with your tax adviser.