U.S. Senate Passes Paycheck Protection Forgiveness Act of 2020

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On 6/3, the U.S. Senate passed the Paycheck Protection Forgiveness Act of 2020, which was passed by the House of Representatives the week prior. It now awaits the President’s signature. The main provisions of the Act were discussed on a 6/4 JFNA webinar. Click here to access the webinar presentation deck.

There will be a future, more detailed webinar on the new Act after the SBA issues guidance, but following are Act highlights.

  • Extends the covered period, the time that PPP funds have to be used, from 8-24 weeks
  • Extends eligibility for the program from June 30th, 2020 to December 31, 2020
  • Extends the date that nonprofits and businesses have to rehire employees and qualify for purposes of loan forgiveness from June 30th, 2020 to December 31, 2020.
  • Extends the period for paying back portions of the loans that are not forgiven from 2 years to at least 5 years
  • Changes the SBA-imposed requirement that 75% of PPP loan proceeds be used to pay for payroll expenses and no more than 25% on rent and utilities to at least 60% of loan must be used for payroll
  • Ensures that successful PPP applicants would now be eligible to defer 2020 payroll taxes, something that was prohibited under the CARES Act.

Questions about the loan program should be directed to JFNA at [email protected]

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