Paycheck Protection Program Flexibility Act Signed into Law
On June 5, 2020, President Trump signed into law HR7010, Paycheck Protection Program Flexibility Act of 2020 that will ease restrictions on the $670 billion Paycheck Protection Program while retaining loan forgiveness qualifications. Among the changes include affording borrowers 24 weeks instead of 8 weeks to use the funds, increasing the amount they spend on non-payroll portion of a forgivable loan amount, such as rent and utilities, from 25 percent to 40 percent, setting a minimum maturity of five years, and extending the deadline to rehire employees.
While businesses continue to recover from the impacts of the COVID-19 pandemic, the Paycheck Protection Program has provided much-needed relief to several businesses in Gwinnett. However, many businesses raised concerns on certain restrictions on the use of the loans as well as the burdensome requirements to qualify for forgiveness. Businesses will now have more flexibility in keeping their doors open and contributing to the reopening of our economy.
Last week, the U.S. Senate unanimously approved legislation after the U.S. House passed the bill in a 417-1 vote. U.S. Treasury Department and The Small Business Administration recently released a joint statement on its implementation.
In order to assist businesses on how to navigate through the recent changes to the Paycheck Protection Program, the Gwinnett Chamber, in partnership with Access to Capital for Entrepreneurs, Gwinnett County, SCORE North Metro Atlanta and University of Georgia Small Business Development Center Gwinnett, will host a webinar next Tuesday, June 16 at 2 p.m. For more information, please contact Cally D’Angelo, Sr. Director, Membership Services & Small Business Initiatives via email CDAngelo@GwinnettChamber.org.