New PPP Law Offers More Time and Flexibility for Borrowers 

[June 5] There’s great news regarding the Payroll Protection Program (PPP): the new Paycheck Protection Plan Flexibility Act—signed just hours ago—eases restrictions, giving business owners who took advantage of PPP funding more flexibility and time. These are welcomed updates, especially for those who received funding from the first-round of the PPP and whose deadline for using all the funds is about to come due.
 
Specifically, here’s what’s changed:

• The ‘covered period’ for using PPP funds has been extended from eight to 24 weeks. 


• The initial rule stipulating that borrowers had to spend 75% of their funds on payroll in order to have the loan forgiven has been reduced to 60%, giving borrowers freedom to use 40% of the loan on non-payroll costs such as utilities and rent.


• The loan repayment period for unforgiven funds has been extended from two to five years, still at a 1% interest rate. 


• Initially,...
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