On Wednesday evening, the U.S. Senate unanimously approved the House version of legislation providing much-anticipated flexibility and relief for recipients of Paycheck Protection Program funding under the CARES Act, clearing it for President Trump’s signature.
This legislation is referred to as the Paycheck Protection Program Flexibility Act of 2020. See the bill here.
A few of the significant changes in the legislation include: 1) establishing a minimum maturity of 5 years for a paycheck protection loan with a remaining balance after forgiveness, 2) extending the covered period (from 8 weeks to 24 weeks) during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness, and 3) raising the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%.
We will continue to provide updates as news and new information is learned.
This text is provided with the understanding that the Board of Retirement is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.