Skip to Content
Photo of a small business deli owner in his shop.
Article

The Senate passes the Paycheck Protection Program Flexibility Act

June 4, 2020 / 3 min read

On June 3, 2020, the Senate passed the Paycheck Protection Program Flexibility Act in hopes of helping small businesses more thoroughly take advantage of the provisions of the PPP. Here are the key takeaways.

The Paycheck Protection Program (PPP) provisions of the CARES Act have been continuously evolving since signed into law on March 27, 2020. On June 3, 2020, the Senate passed House Bill H.R. 7010 Paycheck Protection Program Flexibility Act (PPP Flex), the latest evolution of the PPP. The purpose of this legislation is to enable small businesses to more thoroughly take advantage of the provisions of the PPP.

The purpose of this legislation is to enable small businesses to more thoroughly take advantage of the provisions of the PPP.

The key provisions of the PPP Flex include:

The added flexibility provided by the PPP Flex, along with the gradual reopening of the economy that is starting in various parts of the United States, may enable companies who have received PPP funding to more strategically utilize the loan proceeds to bolster their businesses during the restart period. As companies restart their businesses, they may:

The PPP Flex addresses many concerns the small business community and lenders had regarding the PPP. Additional guidance and clarification from the SBA are required (likely through updated FAQs and Interim Final Rules). For example, the PPP Forgiveness Application must be updated to reflect the changes required by the PPP Flex.

The PPP Flex addresses many concerns the small business community and lenders had regarding the PPP.

As the provisions of this program and the SBA’s guidance and interpretations evolve, we will continue to keep you up to date. Please continue to monitor the Department of Treasury’s PPP information site.

Related Thinking