This week, Congress passed the Paycheck Protection Flexibility Act of 2020. With this new development come some exciting updates to take note of:
-
The forgiveness period has been extended and is now twenty-four weeks from the date of the loan.
-
40% of the loan can now be used for non-payroll expenses (the allowed allocation was previously 25%)
-
Small businesses now have until December 31, 2020, to bring their workforces back up to where they were before COVID-19.
-
And participation is allowed even if businesses defer payroll taxes.
This bill will now go to President Trump’s desk for approval. For more information on these changes, check out the following articles:
New PPP Law Extends 8-Week Period and Reduces Percent Payroll Cost Rule (Entrepreneur.com)
Congress eases PPP loan terms to aid small business: What to know (Yahoo.com)
For questions regarding your account or relevant services offered by Bookkeeping Express call 720-213-8040 or contact us here.