June 4, 2020 Posted by: Category: Blog No comments

The Senate just passed the Paycheck Protection Flexibility Act Wednesday night 6/3/2020.

It now goes to the president to be signed.


The major changes to the PPP Program are as follows:

  • You can choose to extend the covered period for loan forgiveness from 8 weeks to 24 weeks, or you can keep the original 8 weeks.
    This is designed to make it easier to get full loan forgiveness.
  • The deadline to rehire employees to be covered by the loan was 6/3/2020 and is now extended to 12/31/2020.
  • Prior to this change, forgiveness could be limited if there is a reduction in force.
    Now there are exceptions for reasonable cause for the reduction in force.

    • e.g. you could not find qualified workers or cannot restore the business to 2/15/2020 levels
  • The Payroll percentage has been reduced from 75% of total forgiveness to 60%.
    This is now a cliff, meaning if you spend 59% on payroll, the entire amount is not forgiven.
    Several legislators are unhappy with this language and more legislation may be coming on this matter.
  • The time to pay the loan has been increased from 2 years to 5 years.
  • You can now delay the payment of payroll taxes, which was prohibited under the CARES act.
  • The deadline to apply for the loan forgiveness was 6/30/2020 and is now extended to 12/31/2020.


NOTE:  the extension to 24 weeks does not get us to 12/31/2020 so how the rehire of employees to 12/31/2020 plays into the 24 week extension is not yet known

We expect the SBA to issue new guidance and possibly new forms

As we learn more details we will let you know.


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Paul Dion - Speaker, Author, and Tax Advisor - has been planning and preparing returns for business owners for over 25 years with a specialty in helping real estate agents and investors. His passion is to help business owners legally pay the least amount of tax using court-tested and IRS-approved tax strategies. In addition, he continues to advance service offerings to include income saving strategies designed to deliver higher profits to your business.