The New Paycheck Protection Program Flexibility Act Helps a Lot of Borrowers. But Does It Help You?

Prior to June 5, borrowers of Paycheck Protection Program (PPP) loans felt (or should have felt) a sense of urgency about those loans. It was recently suggested that the time was “now” to run your numbers to determine what portion of your PPP loan was in jeopardy of not being forgiven by the Small Business Administration (SBA). The reason for our concern was that, under guidance provided by the SBA, 75% of your PPP loan had to be spent on payroll during the eight-week period following the funding of the loan in order for it to be forgivable. The various restrictions imposed by the SBA made it difficult for most borrowers to be eligible for forgiveness of their entire loan amounts.

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