PPP Forgiveness Update
- Rob Philion, Managing Partner
- Jun 8, 2020
- 1 min read
On Friday (6/5/20), President Trump signed the PPP Flexibility act into law. Here are the important changes:
The “covered period” for forgiveness related to the loan funds has been increased from eight (8) weeks to twenty-four (24) weeks.
Forgivable expenses that are not “payroll costs,” including rent, utilities, mortgage payments, and other interest, are now permitted to amount to up to forty percent (40%) of the forgivable amount, an increase from twenty-five percent (25%) under the original PPP.
The deferral on payments has been extended from six (6) months to twelve (12) months.
All new PPP loans originated after the enactment shall have a five (5) year maturity, an increase from two (2) years under the original PPP. Lenders shall have the ability to modify the existing loan terms to increase the maturity to five (5) years.
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