Volume 10 Issue 2 | Page 26

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. 26 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com