Changes to the Paycheck Protection Program

June 10, 2020

I want to be sure to inform you of the changes Congress has recently made to the Paycheck Protection Program (PPP), which was created by Congress in March in effort to help small businesses affected by the COVID-19 pandemic.

The Paycheck Protection Flexibility Act, which was signed into law last week, eases some of the restrictions on small businesses to use and pay back the loans they receive from the Paycheck Protections Program.

According to a release from David Lehman, the head of the Connecticut Department of Economic and Community Development (DECD), key changes to the PPP include the following:

  • Extends the period to use PPP funds from 8 weeks to 24 weeks
  • Reduces the minimum payroll spend to 60% (from 75%)
  • Borrowers can now use the 24-week period to fully restore their workforce levels and wages (December 31 instead of June 30)
  • Businesses now have five years to repay the loan, instead of two

If you or someone you know owns a small business and would like more information on these recent changes to the Paycheck Protection Program, click here.