The Senate passed H.R. 7010: “PPP” Flexibility Act of 2020
HR 7010 which passed the house last week, passed the senate unanimously and now its on to the president to sign it into law.
You may have missed last week’s blog which I posted after this bill passed in the house with some “notes” based upon the House and Senate versions. That blog post can be viewed here.
This updated version now goes to President Trump to be signed into law. Here is a brief update of key provisions; now we have several more options and decisions to make:
- should we elect to use the 8 week or potential 24 week cut off
- should we use the 75% – 25% allocation or work with the 60% cliff spend on payroll costs
- should we elect to use the December 31, 2020 rather than June 30, 2020 to measure the “Full Time Equivalent” employees and for calculation of forgivable expenditures
- should I keep the PPP funds as a loan as the term will expand from 2 years to 5 years
Hopefully, the President can sign this into law soon, and borrowers whose covered periods are about to expire can make decisions based on these provisions.
As always we will keep you posted on these and other developments as we learn of them. We are also available to support your loan forgiveness applications and to help you make these decisions.
Best wishes to you, your family and friends for health and safety through these trying times.