money matters
PPP Flexibility Act of 2020
by Brian Howell, CPA
On June 5, 2020, the President signed H.R. 7010, a bill entitled
the Paycheck Protection Program Flexibility Act of 2020 (the
PPPFA). The act amends several key provisions of the CARES
Act that was passed in late March as a relief package in response
to the COVID-19 pandemic. The most significant provision of
the CARES Act was the creation of a new SBA-administered loan
program known as the PPP which put money into the hands of
small businesses and could potentially be forgiven. The PPP has
evolved several times since its passage in March and the PPPFA
1
Extends loan repayment from
2 years to 5 years
H.R. 7010 extends the repayment period
for unforgiven loans from 2 years to 5
years. This extended period applies only
to PPP loans made after passage of
the bill, but lenders and borrowers are
free to renegotiate the terms of existing
PPP loans that do not have the
5-year maturity.
now provides even more changes for borrowers.
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