Senate passed the PPP Flexibility Act of 2020

The Senate passed the Paycheck Protection Program Flexibility Act of 2020. The measure makes significant improvements to the Paycheck Protection Program that AGC has been pushing for and its passage marks another legislative victory for the association. Among these improvements are:

• Extending the amount of time that loan recipients can spend PPP funds, and qualify for loan forgiveness, from eight to 24 weeks.

• Revising the uses of loan funds eligible for forgiveness from 75 percent in payroll costs/25 percent in non-payroll costs to 60 percent/40 percent, respectively;

• Creating a safe harbor for employers that made a good faith effort to hire or re-hire qualified employees;

• Extending the maturity of PPP loans from two to five years; and

• Allowing PPP loan recipients to defer payroll taxes through the end of 2020.

President Trump is expected to sign the measure into law as soon as today. Click HERE for AGC’s reaction to its enactment.