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News & Press: Legislative Issues

US Senate Passes PPP Flexibility Act of 2020

Thursday, June 4, 2020   (0 Comments)
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President Trump will likely sign the bill today. The Senate debated about the bill, but finally agreed to approve the version that passed the U.S. House by a vote of 417-1.
The bill provides much more flexibility for Paycheck Protection Program borrowers.
  1. It extends the covered period for loan forgiveness payments from 8 weeks after origination to 24 weeks.
  2. It extends the loan payback date from 2 years to 5 years.
  3. It reduces the minimum amounts for payroll for loan forgiveness to 60% from 75%.
  4. It extends the safe harbor date for restoring Full Time Equivalent payrolls from June 30, 2020; to December 31, 2020.
  5. It adds a section requiring the loan forgiveness application to be filed within 10 months of the last date of the covered period.
As we discussed on our Open Forum yesterday, there are still quite a few areas of clarity the U.S. Treasury and SBA need to give PPP borrowers, but this provides some timely relief.

You can click here for a copy of the bill as it was passed by the House.

Any questions please contact CALPASC Director of Risk Management Bruce Wick at 760-535-9623, or bwick@calpasc.org.

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