President and Congress relax restrictions on Paycheck Protection Program loans

On May 27, 2020, the U.S. House of Representatives passed the Paycheck Protection Program Flexibility Act (PPPFA) by an almost unanimous vote of 417-1, and the Senate followed suit on June 3, 2020, by unanimous consent. One June 5, 2020, President Trump signed the legislation into law, and this new law is an attempt to address the concerns of businesses that have received loans through the Paycheck Protection Program.

Among the changes in the law, the percentage required to be paid on payroll is lowered, the requirements on rehiring are reduced, and the payback term is extended. For a good overview of the new law, please see this Forbes article. For specifics of the law and to see how your loan may be impacted, please contact your local lending professionals.