On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act of 2020 (PPP Flexibility Act) into law. The PPP Flexibility Act provides the following:
While the PPP Flexibility Act is intended to provide more flexibility for borrowers, it also creates some new ambiguities. For example, if the employer elects to use the 24-week covered period, they may have to maintain employment levels during the entire 24 weeks (subject to certain exemptions noted above and ones previously proved by the SBA in its prior guidance). The SBA and Department of Treasury will likely provide additional guidance and clarification.
The rules surrounding PPP loans are complex and business specific. If you have concerns about the rules, please contact Ford Turrell, Timothy Hillegonds, Rob Davies, Matthew Crowe, Charlie Goode, Jeffrey Ott or your Warner attorney.
