On May 11, 2020, Congressmen Chip Roy and Dean Phillips introduced the Paycheck Protection Flexibility Act, new legislation meant to provide additional assistance to businesses impacted the coronavirus pandemic. This bill would make major adjustments to the current Paycheck Protection Program (PPP) should it become law.
Some of the notable changes the bill would make to the PPP program include:
- clarifying that companies can spend the PPP loan funds past the initial 8-week period and still be eligible for forgiveness;
- allowing businesses to use more than 25% of the loan proceeds for non-payroll related expenses;
- extending the employee rehiring deadline beyond the current deadline of June 30, 2020; and
- providing payroll tax deferments for businesses holding PPP loans.
Besides providing tax and other financial benefits to businesses, the Paycheck Protection Flexibility Act is primarily aimed at providing more latitude for employers to decide how they wish to use their PPP funds. Congressmen Chip Roy and Dean Phillips believe that doing so will enable companies to better prepare for the future while continuing to provide for their employees during this difficult time.
PilieroMazza is monitoring the rapidly changing COVID-19 crisis and will provide updates when more guidance is released by the government. We also invite you to visit the Firm’s COVID-19 Client Resource Center to access resources that will help businesses navigate the effects of the COVID-19 pandemic. If you need immediate assistance, please contact us at firstname.lastname@example.org.