SBA Update

June 8, 2020

The Paycheck Protection Program (PPP) Flexibility Act

President Trump signed the PPP Flexibility Act into law June 5th allowing businesses more leeway in using the funds obtained through the SBA’s PPP.  The legislation allows businesses to spend more on non-payroll costs, up to 40% instead of the previous 25% limit, and over a longer repayment term (extended from two years to five years) and the required eight-week period for spending the funds extended to 24 weeks.  The covered period for rehiring workers to keep payroll levels consistent with pre-virus levels was extended from June 30 to December 31, 2020.  The Act allows businesses that took a PPP loan to also delay payment of their payroll taxes, which was prohibited under the CARES Act.

Fixed-Rate DCPC Pools

Floating-Rate 7(a) Pools

Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

The information included herein has been obtained from sources deemed reliable, but it is not in any way guaranteed, and it, together with any opinions expressed, is subject to change at any time. Any and all details offered in this publication are preliminary and are therefore subject to change at any time. This has been prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual or institution. This information is, by its very nature, incomplete and specifically lacks information critical to making final investment decisions. Investors should seek financial advice as to the appropriateness of investing in any securities or investment strategies mentioned or recommended. The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results achieved during the projection period may vary from the projections. The firm may have positions, long or short, in any or all securities mentioned. Member FINRA/SIPC.
Copyright © 2021
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120