On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (the “Flexibility Act”) was enacted, amending key provisions of the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Many of these changes are beneficial to borrowers of PPP loans and alter key parts of the Interim Final Rules implemented by the Small Business Administration (“SBA”) following the passage of the CARES Act. The changes include:
In the Joint Statement issued on June 8, 2020, the Treasury and SBA also clarified that the extension of the “Covered Period” to December 31, 2020 does not extend the deadline for applying for a PPP loan. As a result, June 30, 2020 is still the last day on which a PPP loan application can be approved.
For more information regarding the PPP and the SBA’s loan forgiveness application, please see the following posts:
For more information about recommended steps, please contact your Foley relationship partner. For additional web-based resources available to assist you in monitoring the spread of the coronavirus on a global basis, you may wish to visit the CDC and the World Health Organization.
Foley will continue to keep you apprised of relevant developments. Click here for Foley’s Coronavirus Resource Center for insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form.