PPP Flexibility Act Passes the Senate!: This evening the Senate passed the Paycheck Protection Program Flexibility Act. The PPP Flexibility Act was passed by the House last week with bipartisan support. The Senate had a competing bill called the Paycheck Protection Program Extension Act. that ultimately never made it to the floor. The PPP Flexibility act was passed by the senate in its entirety without change, the details of the changes to the PPP are included in this article. The article showed a comparison between the two pieces of legislation that is now no longer relevant, borrowers can just focus on the Flexibility Act. The Act now heads to the President for signature, he has indicated that he is supportive, so we can expect this to pass into law within the next few days.
The changes will be significant and will open the door for many borrowers to have their entire loan forgiven. We recommend you review the article which breaks down the changes so you can begin planning out the impact on your loan.
Reminder Section: (what should I be doing):
- Call your Payroll Company about claiming the payroll tax deferrals and employee retention credits that were made available in the CARES Act – see previous emails.
- Talk to your Payroll Company about the qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act) – see previous emails.
- Consider speaking with your lender to discuss changes to terms of existing debt facilities. The banking system remains strong.
- If you have already received a PPP loan, start forecasting how you intend to spend the funds and how to qualify for the highest amount of forgiveness possible.
This information is provided by Withum. Visit Withum’s COVID-19 Resource Center for insights to help you and your business during this challenging time.