Hold on to your seat folks: here we go again, we’re talking PPP forgiveness.

Last night the Senate unanimously passed the PPP Flexibility Act that was passed last week by the House. It is expected to be quickly signed into law by President Trump.

Some of the highlights include:

  • The non-forgivable balance of loans will amortize over five years instead of 2 years.
  • The period for allowable forgivable expenses expands to 24 weeks instead of 8. (borrowers at their choice can still use 8),
  • The safe harbor for restoring FTE headcount is now 12/31/20.
  • The threshold for covered payroll expenses is 60%, instead of 40%.

As a general note, for businesses that have been badly hit by Covid-19, this legislation will give them more of a chance to live to fight another day.  And for those who are down a bit, stable or growing and got a PPP, this new extension should give an extra windfall to grow and expand.

Now, before you get too excited – let’s get two things clear.

  1. In all of this legislation, the devil is in the detail, and the details are not precise. The law is one thing – the guidance and interpretations are another thing.  Expect bureaucrats at the SBA and Treasury Departments to be burning the midnight oil the next few weeks, trying to explain the nuances of all of this in quasi - English. 
  2. We think more legislation is coming, and the cycle will start again.

As promised, the MultiFunding team continues with our commitment to helping you decode all of this and do everything we can to assist through the crisis.  So I will be offering an Aminar on the new PPP Flexibility Act at four pm EST tomorrow.  But I have one ask.  When my answer to many of your questions is "we're waiting for more guidance," please don’t shoot the messenger over zoom.