Paycheck Protection Program Flexibility Act and Updates on Foreign Affiliates and Loan Forgiveness

June 8, 2020

The Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”) was signed into law by President Trump on June 5, 2020, which provides Paycheck Protection Program (the “PPP”) loan borrowers additional time to incur costs that count towards PPP loan forgiveness, reduces the portion of such costs that must be payroll costs, provides an additional exemption from the CARES Act’s loan forgiveness reduction provisions and extends the deadline to rehire workers in order to remain qualified for full forgiveness.  The PPP Flexibility Act also allows businesses that receive loan forgiveness to defer payroll taxes and extends the PPP loan maturity date and loan deferral period.

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