NOW LAW: Flexibility on coronavirus relief loans for small biz
Key Message: Small businesses will have an easier time getting their Paycheck Protection Program loans forgiven thanks to the Paycheck Protection Program Flexibility Act, just signed into law by President Trump today.
The Details: Now, small businesses:
- Only need to use 60% of the loan on payroll—down from 75%.
- Can use the money for up to three times longer, rather than just for two months.
- Can rehire employees past the original June 30th deadline
- Can repay the loans over a longer period of time
- Can defer payroll taxes and receive loan forgiveness
The Paycheck Protection Program played a large role in keeping workers attached to their employers—one of several relief programs that helped the May jobs report beat expectations with more jobs added than anticipated by experts.
The bill passed the House with nearly unanimous bipartisan support, and the Senate by voice vote.
Want to read more on the fight against Coronavirus? Read our Coronavirus Bulletin here which contains our extensive FAQ about recent federal actions.
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