We have some good news from Capitol Hill to share. The House of Representatives passed the PPP Flexibility Act yesterday allowing organizations who have received PPP funds greater flexibility on loan forgiveness. The bill is expected to pass the Senate in the next week, although there could be adjustments to the bill. There are 4 key items within the bill to highlight:
The forgivable percentage needed to be spent on payroll costs is reduced from 75% to 60%. This allows businesses greater flexibility to spend on the other eligible forgivable expenses (rent, utilities, loan interest)
Extends the loan forgiveness window from 8 weeks to 24 weeks. This would allow most businesses to easily have the majority of the funds received become forgivable.
Extends the June 30th deadline to rehire workers allowing businesses more time to rehire a full staff.
Allows businesses that received a PPP loan to also defer payroll tax payments. These taxes would need to be paid at a later date.