June 2020
The Paycheck Protection Program (PPP) helps small business owners and other individuals adversely affected by the COVID-19 pandemic. In particular, the loans provided through the program are forgivable as long as borrowers retain their employees on payroll for a defined number of weeks.
Congress has approved legislation that triples the number of weeks business owners have to use the loans, from eight weeks to 24 weeks, while retaining full loan protection. The Paycheck Protection Program Flexibility Act, approved by the U.S. Senate on June 3, 2020 after near-unanimous approval by the House, also changes the ration of funds that must be spent on payroll from 75/25 to 60/40. This change allows business owners to have greater discretion in using funding on overhead expenditures.
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