Update: The Paycheck Protection Program Flexibility Act of 2020 is now law. Read more here.

HR 7010, the Paycheck Protection Program Flexibility Act of 2020, was passed by the U.S. House of Representatives on Thursday, May 28, 2020. This bill is on its way to the Senate and will likely be voted on next week. We expect there will be some negotiating and revisions.

While we wait to see the outcome in Congress, here are a couple of the borrower-friendly provisions the bill includes:

• Increase the covered period to 24 weeks, or by December 31, 2020
• Reduce ratio of payroll costs eligible for forgiveness to 60% from 75%
• Allow borrowers to continue to defer employer payroll tax even after loan is forgiven
• Provides additional exceptions to the FTE requirement for forgiveness

Keep an eye out for Delap's update when the revised bill gains House and Senate approval. Subscribe to our email list to get the update first.