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.


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Partnership Program with the SBA, administered by the State University of New York. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration.  All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. All SBA funded programs are extended to the public on a nondiscriminatory basis.

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