PPP Flexibility Act Passes Senate, significantly decreases barrier to loan forgiveness

The Senate unanimously approved H.R. 7010 – Paycheck Protection Program Flexibility Act of 2020. By passing the House bill, the Senate avoids a long and drawn out reconciliation process. The President is expected to sign the bill into law quickly. While the bill provides much needed flexibility to small businesses, there is one change that can significantly impact a borrower’s ability to achieve loan forgiveness. The tersely worded bill provides for only 7 bullet points.  We expect the Small Business Administration, in conjunction with the Department of the Treasury, to provide revised regulations in the coming days and weeks.

Below is a summary of the key updates:

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While H.R. 7010 provides welcome relief, there are still unanswered questions that will require clarification from the SBA and Department of Treasury. Below is a synopsis of these items:

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