The much-anticipated relief for small businesses was signed into the act this weekend. The PPP Flexibility Act (PPPFA) was officially passed and signed by the President this weekend which ultimately allows you more flexibility to use the funds as intended and get the forgiveness of the loan.
PPP Flexibility Act (PPPPFA) highlights:
• Increasing the time businesses have to use the loan on eligible expenses from 8 to 24 weeks
• Moving back the deadline to rehire workers or restore wage reductions from June 30, 2020 to December 31, 2020
• Providing forgiveness reduction exceptions for business owners who show they could not rehire workers or reopen due to safety standards
• Reducing the amount of the loan needed to be spent on payroll cost from 75% to 60%
• Allowing recipients to repay the portion of the loan that is not eligible for forgiveness in 5 years, instead of 2 years
Please also see this Forbes article explaining the PPPFA in a bit more detail.
For many, this may change your strategy on spending your PPP money.
Please reach out to FLORES and we will help you plan and budget accordingly.