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Congress Passed the Paycheck Protection Program Flexibility Act

Congress Passed the Paycheck Protection Program Flexibility Act

As a supplement to the well-publicized PPP loan portion of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Congress passed a bill titled the Paycheck Protection Program Flexibility Act. This bill is meant to modify and assist the variety of businesses which can obtain or would be eligible to obtain PPP loans.  The bill is awaiting President Trump’s signature.

The publicized benefits of the Paycheck Protection Program Flexibility Act include:

  • Small businesses will now have more than just 8 weeks to use the PPP loan funds for acceptable purposes. The use period will be increased to 24 weeks after receipt of the PPP loan.
  • The bill would provide more flexibility concerning the 75/25 rule for forgiveness of PPP loan funds by modifying the ratio to at least 60% on payroll and no more than 40% on other allowed costs, such as rent, mortgage payment, utilities, etc..
  • New PPP loans issued after the bill is passed into law would have a 5-year loan term rather than a 2-year loan term for earlier issued PPP loans. Nothing would restrict lenders and borrowers of earlier obtained PPP loans from modifying the loan terms to extend the term of the loan.
  • PPP borrowers will have full access to payroll tax deferment now. Previously this deferment was unavailable if the loan were to be forgiven.

We plan on publishing updates as the regulations and guidelines are issued.

If you need assistance navigating these uncertain times, please reach out to us. Our law office has remained open and continues to serve our clients. We are available by telephone, email and Zoom.

Should you have any questions or wish to schedule a consultation concerning the topics in this article, please contact Dainius Dumbrys at

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