Senate Approves Bill Extending Paycheck Protection Program

June 4, 2020

Last night the Senate passed unanimously, the Paycheck Protection Flexibility Act.   The House passed this legislation last week with a 417 to 1 vote.  Congress is confident that this bill will be signed by the President. 

Many businesses are currently in the 8-week covered period and are doing calculations for the forgiveness application.  The Act will loosen requirements on the Paycheck Protection Program.

The major provisions:

  • Borrowers can choose to extend the 8-week period to 24 weeks.  This flexibility is designed to make it easier to reach full forgiveness.
  • The payroll expenditure requirement drops to 60% from 75%, but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven.
  • The deadline for restoring payroll levels is now December 31, 2020, a change from the previous deadline of June 30 th .
  • Borrowers now have 5 years to repay the loan instead of 2.  The interest rate remains at 1%.
  • The bill allows businesses that took a PPP loan to also delay payment of their payroll taxes (FICA), which was prohibited under the CARES Act.

Additional guidance will be forthcoming.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Share Post:

By Katrina Arona June 23, 2025
Tax Tip: Make sure you chose the correct ownership structure when buying a vacation home.
Estate Planning
By Katrina Arona June 18, 2025
Having a well-crafted estate plan can help ensure your wishes are carried out after your death, providing a peace of mind that your family will be taken care of as intended.
By Katrina Arona June 13, 2025
A Bed for Every Child's build a bed program took place at MBK on June 13th in collaboration with Charter Oak Financial Group and Colebrook.
Show More