paycheck protection program flexibility act

The Paycheck Protection Program Flexibility Act ("Flexibility Act") was passed on June 5 and made several pro-business changes to PPP loans. The highlights are as follows:

• The time period in which funds must be used has increased from 8 weeks to 24 weeks.
• Loan payments were originally deferred 6 months. This has been extended to 10 months.
• Originally, 75% of a PPP loan had to be used for payroll. This has now been adjusted downward to 60%.
• All new PPP loans made after the "Flexibility Act" was passed will have a 5 year term. If you had a PPP loan prior to the Flexibility Act, you may need to discuss with your lender how to amend your loan from a 2 year term to a 5 year term.