Paycheck Protection Program : Key Program Changes

Changes were just signed into law for the Paycheck Protection Program (PPP) that will be of great benefit to small businesses.

Key program changes include:

• a reduction in the minimum percentage of funds required to be spent on payroll from 75% to 60%

• extending the loan forgiveness covered period from eight to 24 weeks after the date of loan disbursement.

• Increasing the loan term for five years (for loans approved by the SBA on or after 6/5/20) and extending the deferral period for borrower payments

• Providing a “safe harbor” from reductions in loan forgiveness based on reductions in full-time employees if unable to 1) resume level of pre COVID-19 business activity due to worker or customer safety compliance issues; or 2) rehire individuals/hire similarly qualified employees for unfilled positions

The SBA has not yet issued rules and guidance, a modified borrower application form or modified loan forgiveness application. In the interim, check out the PPP program press release​ for more detail on these program changes.