Federal Spotlight: Trump Signs PPP Flexibility Law
June 11, 2020
Last Friday, President Trump signed legislation that eases the current rules of the Paycheck Protection Program under the CARES Act. H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, does a number of things to help businesses who take advantage of the program. The bill extends the timeframe in which loan recipients must use their loans from eight weeks to 24 weeks or the end of the year, whichever comes first. The bill also changes the percentages in which loan recipients must use their funds. Previously, a person must have used at least 75% on payroll and were allowed to use up to 25% on non-payroll expenses. That now changes to a 60%-40% ratio. Several ABI members have been able to take advantage of the PPP, and we’re pleased Congress and the president have enacted this measure.