Updated on June 12, 2020
Originally Posted on June 1, 2020
On May 15, 2020, the Treasury Department and Small Business Administration (“SBA”) released the Paycheck Protection Program (“PPP”) Loan Forgiveness Application (“Application”), which included long-awaited instructions for borrowers of PPP loans who intend to seek forgiveness. The application and directions can be found HERE. A week later, on May 22, the SBA issued additional comments on the loan forgiveness process for both entrepreneurs and banks, which gave more clarity but left a number of questions still unanswered. Now Congress is weighing in with potentially sweeping changes.
On Thursday, May 29, the House of Representatives passed HR 7010, the Paycheck Protection Program Flexibility Act of 2020. It passed by a noteworthy 417 to 1, which is a positive indicator of bi-partisan support that we expect will carry over to the Senate, although there are at least two competing bills in the Senate, and it is anyone’s guess what the final terms will be once the law passes.
On Friday, June 5, the President signed HR 7010, the Paycheck Protection Program Flexibility Act of 2020, into law. A summary of which is below.
Highlights of New Legislation Passed into Law on June 5, 2020
HR 7010 (HERE), signed into law by the President on June 5, 2020, made multiple changes to the PPP Loan program. The most significant change is the extension of the 8-week Covered Period to 24 weeks (or December 31, 2020, if earlier). Additional highlights include:
How do you proceed to use your PPP funds during this cloud of uncertainty?
Hunter Business Law is continuing to review and monitor additional updates and/or guidance provided by Congress, the Treasury Department, and the SBA. For our Coronavirus alerts, click HERE.
This Bog was written by Hunter Business Law Attorneys Stephanie Boussias, Esq., and Sheryl Hunter, Esq.
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