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As always, we want to share with you all of the information we have available. The Small Business Administration (SBA) has released updates regarding the forgiveness of PPP Loans.

PPP Flexibility Act

Qualifying for Forgiveness may be easier:

  • Extends the covered period for borrower to use funds from 8 to 24 weeks. Borrowers can elect to stay with the existing 8 weeks
  • Extends forgiveness application deadline to December 31, 2020, from June 30, 2020
  • Reduces portion required to be used for Payroll Costs from 75% to 60%. Note: Requires borrower to spend 60% on payroll or none of the loan will be forgiven
  • Extends safe harbor restoration deadline date provisions to December 31, 2020, from June 30, 2020
  • Creates a new safe harbor provision to remove the FTE reduction in forgiveness

Forgiveness timeframe extended:

  • Defer principal and interest payments until SBA remits the loan forgiveness amount to the lender (currently only a six-month deferral period)
  • Loan forgiveness must be requested by the borrowers within 10 months of the last day of their covered period or payments would begin at that time
  • Removes restriction on a borrower’s access to payroll tax deferment

Read Official News Release

View at

Stay Up to Date with SBA

We encourage you to visit the SBA’s website at to gain additional knowledge and support any questions you may have.

Recent Press Release by SBA
SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application

Read Press Release

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