Earlier today, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020, which loosens some of the restrictions on the existing Paycheck Protection Program as follows:
- Extends covered period from 8 weeks to 24 weeks.
- Allows deferral of payroll taxes for businesses that will receive PPP forgiveness.
- Reduces the payroll costs to other costs ratio from 75/25 percent to 60/40 percent.
- Extends deferral period for loan principal, interest, and fees.
- Provides additional exemptions based on employee availability.
Your advisory team at JFS will continue to watch for additional guidance from the Small Business Administration regarding the PPP loan program and forgiveness under the new Act to keep you informed. If you have any questions about your existing PPP loan or the new Act please contact Karen Abusaleh at firstname.lastname@example.org or 724-383-1734.