Client Alert: URGENT - New “Paycheck Protection Program Flexibility Act” Significantly Changes PPP Loan Forgiveness Rules

On June 5, 2020, H.R. 7010, entitled the “Paycheck Protection Program Flexibility Act” (the “PPPFA”), was signed into law. As discussed in this Client Alert, the PPPFA significantly modifies certain of the existing rules related to the forgiveness of PPP loans in an effort to provide borrowers more flexibility with respect to the use of PPP loan proceeds. Such changes include, among other things, extending the time period allowed for borrowers to spend forgivable PPP loan proceeds and lessening the overall amount of PPP loan proceeds which are required to be spent on “payroll” costs. That being said, the PPPFA does raise some additional questions and issues of which both existing and new PPP loan borrowers should be aware. Learn more in this new COVID-19 Client Alert written by Freeborn Partner, Anthony Zeoli.

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