After weeks of debate and negotiation, the US Senate and the House finally came to an agreement on amendments to the Paycheck Protection Program (PPP) giving borrows more freedom on how and when loan funds can be spent without losing eligibility for full loan forgiveness.
The Paycheck Protection Program (PPP) loan had previously given borrowers just eight weeks to spend the funds received. For borrowers to be eligible for full loan forgiveness they had to spend 75% of the PPP loan on payroll costs. Consequently, most businesses whose payroll costs went down emanating from layoffs, found themselves in situations where they could not spend funds without risking their eligibility for full loan forgiveness.
Provisions of the Paycheck Protection Program Flexibility Act (PPPFA)
No doubt this added flexibility will benefit many nonprofit organizations. Please visit the Small Business Administration website for detailed information as to how your nonprofit organization can benefit from the PPP Flexibility Act.