While guidance for forgiveness is still coming, the Paycheck Protection Program Flexibility Act (PPPFA),
was recently signed into law extending the covered period and providing increased loan flexibility.
What You Need to Know.
- Continued Coverage. The forgiveness period for all PPP loans has been extended by 24 weeks to
December 31, 2020. This includes extending the rehire exemption date to December 31, 2020.
- Increased Flexibility. At least 60 percent of the forgiveness amount of the loan must be
attributable to payroll costs (decreased from 75 percent). Up to 40 percent can be attributable
to non-payroll costs (increased from 25 percent).
- Extended Deferral Period. The deferral period for payments of principal, interest and fees has
been extended to the date on which the forgiveness amount is remitted to the lender. A
borrower must apply for forgiveness within 10 months after the forgiveness covered period or
the deferral period will end.
More information will be available in the coming weeks.