As part of the U.S. Government’s response to the economic consequences arising from COVID-19 pandemic, the Paycheck Protection Program (PPP) loan was created under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). Restrictions imposed by the Small Business Administration (SBA) provided inflexibility which has caused many small businesses to question the desirability of the loan. In response, the U.S. Government enacted the Paycheck Protection Program Flexibility Act (PPPFA).
The PPPFA modifies provisions pertaining to loan forgiveness in Section 1102 of the CARES Act. A summary of the modifications are as follows:
The text of the Bill can be found at the following link: https://www.congress.gov/bill/116th-congress/house-bill/7010/text?q=%7B%22search%22%3A%5B%22Paycheck+Protection+Program+Flexibility+Act%22%5D%7D&r=2&s=2.
Author’s note: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.