{"id":418,"date":"2020-06-22T14:05:16","date_gmt":"2020-06-22T18:05:16","guid":{"rendered":"https:\/\/www.businesslitigationtrends.com\/?p=418"},"modified":"2020-10-04T13:25:40","modified_gmt":"2020-10-04T17:25:40","slug":"covid-19-updates-introduction-to-ppp-flex","status":"publish","type":"post","link":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/","title":{"rendered":"COVID-19 UPDATES: An Introduction to PPP Flex Act"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-419\" src=\"https:\/\/www.khflaw.com\/news\/wp-content\/uploads\/2020\/08\/Businesswoman-with-Briefcase-1024x576-1.png\" alt=\"Businesswoman waving with right hand and holding briefcase in left.\" width=\"1024\" height=\"576\" \/>On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the restrictions and provide clarification for the original Paycheck Protection Program (\u201cPPP\u201d).<\/p>\n<p>Notably, PPP Flex grants borrowers additional time to incur costs that count towards PPP loan forgiveness, reduces the portion of cost that must be allocated to payroll cost, and provides additional exemption from the Coronavirus Aid Relief, and Economic Security Act (the CARES Act\u201d), the legislation that authorized PPP.<\/p>\n<p>The CARES Act provides that some or all of the borrower\u2019s PPP loan maybe forgiven based on the cost and payments made during what is called the \u201cCover Period.\u201d The Cover Period begins when the PPP loan is disbursed or, if the borrower elects, from the start of the first regular payroll after the PPP loan is first disbursed. The Cover Period was originally set to be eight (8) weeks; however, under the PPP Flex, the Cover Period may be extended to the earlier of twenty-four (24) weeks after the loan origination or December 31, 2020. Nothing precludes an existing PPP loan borrower from using the original 8-week Cover Period. Under PPP Flex, the percentage that the borrower must use for payroll costs to be eligible for forgiveness was reduced. With the SBA\u2019s final interim rule setting the percentage at 75%, legislators have reduced the amount to 60%, such that now 40% of the loan may be used (during the Cover Period) for certain permitted non-payroll costs such as mortgage interest, rent and utilities. PPP Flex also extends the original 6-month deferral period to up to 10 months after the applicable Covered Period, and extends the maturity date of unforgiven portions of the loans to five (5) years from the date of the forgiveness application.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/\"  title=\"Continue Reading COVID-19 UPDATES: An Introduction to PPP Flex Act\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the restrictions and provide clarification for the original Paycheck Protection Program (\u201cPPP\u201d). Notably, PPP Flex grants borrowers additional time to incur costs that count towards PPP loan forgiveness, reduces [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":419,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[415],"tags":[329,328,133],"coauthors":[561],"class_list":["post-418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-miscellaneous","tag-business","tag-covid-19","tag-jacklyn-fetbroyt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>COVID-19 UPDATES: An Introduction to PPP Flex Act &#8212; Kang Haggerty News &#8212; June 22, 2020<\/title>\n<meta name=\"description\" content=\"On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the &#8212; June 22, 2020\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"COVID-19 UPDATES: An Introduction to PPP Flex Act &#8212; Kang Haggerty News &#8212; June 22, 2020\" \/>\n<meta property=\"og:description\" content=\"On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the &#8212; June 22, 2020\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/\" \/>\n<meta property=\"og:site_name\" content=\"Kang Haggerty News\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-22T18:05:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-04T17:25:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.khflaw.com\/news\/wp-content\/uploads\/2017\/10\/KHFSocial.png\" \/>\n\t<meta property=\"og:image:width\" content=\"250\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jacklyn Fetbroyt\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jacklyn Fetbroyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"COVID-19 UPDATES: An Introduction to PPP Flex Act &#8212; Kang Haggerty News &#8212; June 22, 2020","description":"On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the &#8212; June 22, 2020","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/","og_locale":"en_US","og_type":"article","og_title":"COVID-19 UPDATES: An Introduction to PPP Flex Act &#8212; Kang Haggerty News &#8212; June 22, 2020","og_description":"On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. PPP Flex was designed to limit some of the &#8212; June 22, 2020","og_url":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/","og_site_name":"Kang Haggerty News","article_published_time":"2020-06-22T18:05:16+00:00","article_modified_time":"2020-10-04T17:25:40+00:00","og_image":[{"width":250,"height":250,"url":"https:\/\/www.khflaw.com\/news\/wp-content\/uploads\/2017\/10\/KHFSocial.png","type":"image\/png"}],"author":"Jacklyn Fetbroyt","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jacklyn Fetbroyt","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/#article","isPartOf":{"@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/"},"author":{"name":"Jacklyn Fetbroyt","@id":"https:\/\/www.khflaw.com\/news\/#\/schema\/person\/07d25091beadac07af0981718f8c8f69"},"headline":"COVID-19 UPDATES: An Introduction to PPP Flex Act","datePublished":"2020-06-22T18:05:16+00:00","dateModified":"2020-10-04T17:25:40+00:00","mainEntityOfPage":{"@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/"},"wordCount":533,"image":{"@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/#primaryimage"},"thumbnailUrl":"","keywords":["Business","COVID-19","Jacklyn Fetbroyt"],"articleSection":["Miscellaneous"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/","url":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/","name":"COVID-19 UPDATES: An Introduction to PPP Flex Act &#8212; Kang Haggerty News &#8212; June 22, 2020","isPartOf":{"@id":"https:\/\/www.khflaw.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/#primaryimage"},"image":{"@id":"https:\/\/www.khflaw.com\/news\/covid-19-updates-introduction-to-ppp-flex\/#primaryimage"},"thumbnailUrl":"","datePublished":"2020-06-22T18:05:16+00:00","dateModified":"2020-10-04T17:25:40+00:00","author":{"@id":"https:\/\/www.khflaw.com\/news\/#\/schema\/person\/07d25091beadac07af0981718f8c8f69"},"description":"On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (\u201cPPP Flex\u201d) was signed into law. 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