Paycheck Protection Program Flexibility Act

The Bill Before President Trump

Goals of the PPP Flexibility Act:

  • Extends the covered period for loan forgiveness to 24 weeks or December 31, 2020 — whichever occurs first (previously was 8 weeks)
    • Forgiveness will not be reduced (i.e. the grant will not convert to a loan ) if the employer can document they attempted to rehire individuals and have not been able to hire similarly qualified individuals by the 12/31 deadline
    • Forgiveness will not be reduced if the business can demonstrate they haven’t been able to return to the same level of business activity due to new guidelines and standards for sanitation, social distancing, or other safety requirements
  • Loan maturing extends *new* loans (dispersed after this bill) to five years (prior loans are at two years). For prior PPP grants/loans, borrows and lenders can mutually agree to modify maturity terms of a loan.
  • Forgivable Uses: 60% can now be spent on payroll and 40% on rent, mortgage interest, or utilities (from 75/25 split)
  • Payroll Tax Deferral: can now be used with PPP – i.e. if you received PPP funding, you can also defer payroll taxes


The SBA will not issue any new PPP loans after June 30, 2020.


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Post expires at 12:05pm on Wednesday August 5th, 2020



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