The Paycheck Protection Program Flexibility Act

  • Signed into law June 5, 2020
  • Provides an expanded timeline for applying for forgiveness
  • Changes to qualification for forgiveness

The SBA is still developing procedures for accepting forgiveness applications. Fortunately, the Flexibility Act’s timelines provide borrowers with more than ample time to apply for forgiveness. We look forward to rolling out clear guidance in the near future, as soon as we have a green light from the SBA to process applications.

Covered Period — Extended from 8 weeks to 24 weeks, ending no later than December 31, 2020.

Maturity — Extended from 2 years to 5 years for loans made on or after June 5, 2020. Loans made before June 5, 2020 may be extended upon mutual agreement between bank and borrower.

Deferral Period — Borrowers may apply for forgiveness within 10 months after the forgiveness covered period. No payments of principal or interest are due until the SBA remits forgiveness notification.

Payroll Expenses — To qualify for forgiveness the portion of loan funds required to support payroll costs was reduced from 75% to 60%.

In the meantime, please be sure to keep payroll records, canceled checks, bills and bank statements; and continue tracking your qualified expenses, including:
  • Payroll
  • Rent
  • Mortgage Interest 
  • Utilities
For more information, please refer to the SBA and Treasury websites: