President Donald Trump has signed into law the bipartisan Paycheck Protection Program Flexibility Act of 2020 (HR 7010)
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Monday, July 13, 2020

President Donald Trump has signed into law the bipartisan Paycheck Protection Program Flexibility Act of 2020 (HR 7010)

By Payroll and Entitlements Editorial Staff

The legislation aims to expand usability of the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s (P.L. 116-136) headliner small business loan program.

The bipartisan, bicameral-crafted HR 7010 makes several changes to the rapidly implemented Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). The bill, authored by House Reps. Chip Roy, R-Tex., and Dean Phillips, D-Minn., was approved in the House by a 417-to-1 vote on May 28. After a brief stall in the Senate, HR 7010 cruised through the upper chamber by voice vote on June 3.

Most notably, the legislation includes some of the following PPP changes:

  • Extends the expense forgiveness period from eight weeks to 24 weeks;
  • Reduces the 75 percent payroll ratio requirement to 60 percent;
  • Eliminates the two-year loan repayment restrictions for future borrowers;
  • Allows payroll tax deferment for PPP recipients; and
  • Extends the June 30, 2020, rehiring deadline to December 31, 2020.

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