View All Services
As we surmised in a recent blog, on June 3, 2020, the U.S. Senate unanimously passed the U.S. House of Representative version of the Paycheck Protection Program modification legislation (H.R. 7010). On June 5, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law by President Trump. What changes will be made to the program under the Paycheck Protection Program Flexibility Act?
While the Bill does not move the June 30, 2020 deadline to apply to receive a loan under the Paycheck Protection Program (PPP), the Bill does modify the provisions of the CARES Act dealing with the PPP in a number of significant ways:
With this latest legislation, it is expected that the PPP loan forgiveness application as well as the Interim Final Rule on Forgiveness will likely be amended to account for these modifications.
As always, we at Gross McGinley, LLP will keep on top of developments like the passing of the Payment Protection Program Flexibility Act for you and let you know of any relevant changes which can affect your health, wealth and livelihood. Additionally, it is anticipated that further guidance will be issued explaining to both borrowers and banks as to how to implement these changes to PPP Loans that were issued prior to the enactment of this legislation.
This blog was originally published June 4, 2020 and was updated June 8, 2020, after President Trump signed it into law.
Attorney Loren Speziale collaborates with business owners and human resource professionals, providing legal guidance for a wide variety of operational and personnel matters.