On the evening of June 3, the Senate voted to pass the House-passed Paycheck Protection Program Flexibility Act, legislation which increases the flexibility for borrowers with Paycheck Protection Loans by how much of their loan can be forgiven and how long they have to repay. Two days later, on June 5, the president signed the bill, and it became law.
Specifically, the bill:
- Extends the time period during which borrowers must spend loans in order to have the debt forgiven from the current eight weeks to 24 weeks
- Lowers the minimum percentage of funds that must be spent on payroll costs in order to qualify for loan forgiveness (the threshold was 75% and the bill lowered it to 60%)
- Extends how long borrowers have to pay back amounts that are not forgiven from two years to five years.