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.


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Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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