On June 3, the U.S. Senate unanimously approved legislation providing much-anticipated flexibility and relief for recipients of Paycheck Protection Program funding under the CARES Act.

The new Paycheck Protection Program Act of 2020, which has now cleared both houses of Congress, is soon expected to be signed into law by President Trump.

A few of the significant changes in the legislation include:

• establishing a minimum maturity of 5 years for a paycheck protection loan with a remaining balance after forgiveness,
• extending the covered period (from 8 weeks to 24 weeks) during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness,
• raising the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%.

Stay tuned to ECFA.org/COVID19 for more updates on this legislation and related resources.