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President Trump Signs Paycheck Protection Program Flexibility Act

On Friday, June 5, President Trump signed the Paycheck Protection Program Flexibility Act of 2020, which was passed by the House of Representatives on May 28 and by the Senate on June 3. The bill loosens restrictions on the Paycheck Protection Program (PPP) and allows for changes including the following:

  • Extends the covered period from eight to 24 weeks, ending no later than December 31, 2020.
  • Reduces the requirement for the covered loan amount to be used on payroll costs from 75 to 60 percent.
  • Allows businesses that receive PPP forgiveness to defer payroll taxes.
  • Provides additional exemptions based on employee availability.
  • Extends the deferral period for loan principal, interest, and fees.

PPP borrowers should continue to watch for additional guidance from the SBA regarding their loan and its forgiveness. If you have questions about your PPP loan or its forgiveness, please contact your HBK Advisor.

About the Author(s)
Amy Reynallt is a Manager with the HBK Manufacturing Solutions Group in the Youngstown, Ohio office of HBK CPAs & Consultants. She is experienced in navigating the strategic and financial matters associated with manufacturing and works closely with manufacturers to help them plan, execute, and meet their short- and long-term financial goals.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.