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June 16, 2020

Updated PPP Legislation Gives Additional Assistance

Updated legislation pertaining to the Paycheck Protection Program (PPP) was recently enacted. The new law triples the amount of time entities can take to spend PPP funds received and still qualify for forgiveness. Other important updates are highlighted below.


If it appears that the SBA website may not be updated with all of the specifics below, details of the Paycheck Protection Program Flexibility law passed in June can be found here.

Loan Period Extension

Existing PPP recipients can choose to extend the use of funds to 24 weeks (originally 8 weeks) or keep to the existing 8-week timeline.

New PPP recipients have a 24-week period or until 12/31/20, whichever comes first.

Payroll Cost Requirements

Payroll must account for a minimum of 60% of the PPP amount to be forgiven (originally 75%).

Employee Headcount

Recipients have until 12/31/20 to restore workforce levels and wages to pre-pandemic levels required for full forgiveness (originally 6/30/20).

The new law adds exceptions if entities are unable to find qualified employees or restore business operations to pre-pandemic levels.


Be sure to adhere to Rules and Regulations as detailed in the Federal Register.

Repayment of PPP Not Forgiven – Update


This is different for Existing PPP recipients and New PPP recipients for the portion of the PPP loan that is not forgiven:

  • Existing PPP loans can be extended up to five years, if the lender and borrower agree.
  • New PPP loans have five years to repay the loan (originally two years).

The interest rate remains at 1% for all PPP recipients.

Payment of Payroll Taxes

The new law allows entities that received PPP funds to delay payment of payroll taxes. The delay can be after entities receive forgiveness of PPP funds (originally this delay was prohibited under the CARES Act and related previous guidance).


Be sure to adhere to Rules and Regulations as detailed in the Federal Register.


In order to receive forgiveness, recipients must file the PPP Loan Forgiveness Application after the funds are used.

PPP Funds Are Still Available

For those who have not yet applied for or receive PPP loans, funds are still available. Details for application can be found on the SBA website.

If you are having difficulty finding a lender, explore options here.

The Paycheck Protection Program Flexibility Act is welcome news to PPP loan recipients, as it increases a recipient’s ability to have most, if not all of the loan forgiven, if updated guidelines are followed and met.