PIA Publishes Analysis of Changes to PPP
Congress has passed and President Trump has signed H.R. 7010, the Paycheck Protection Program Flexibility Act. The bill extends the window for businesses to be able to spend the funds loaned under the program. The legislation allows businesses that have received Paycheck Protection Program (PPP) loans to spend a smaller percentage of the money, 60 percent instead of the current 75 percent, on payroll and other qualifying expenses and still maintain forgiveness eligibility. The bill gives businesses some new flexibility by allocating more time for them to use their PPP funds—24 weeks instead of eight—and extending the deadline for rehiring workers from June 30 to the end of this year.
PIA National has published a detailed analysis of the changes, written by Lauren Pachman, Esq., PIA National Counsel and Director of Regulatory Affairs. You can access the two-part analysis here and here.
PIA National had urged Congress to repeal the PPP’s payroll requirement altogether, a move that would have provided small businesses with maximum flexibility as they struggle to stay solvent during this difficult time. PIA National will continue to work to improve the PPP in future legislation considered by Congress.