The Paycheck Protection Program (PPP) Flexibility Act has passed both the U.S. House and Senate and is awaiting signature by President Donald Trump. Once signed, this legislation will give small businesses up to 24 weeks (instead of eight weeks as originally provided) to use the emergency PPP loans and still qualify for forgiveness.
The legislation also reduces the threshold for required spending on payroll costs to 60% (down from 75%). Another provision is that borrowers now have five years to repay the loan instead of two, and two new exceptions were given that allow borrowers to achieve full PPP loan forgiveness if they cannot find qualified employees to rehire or are unable to restore business operations.