2020 Year-End Tax Guide

15

www.marcumllp.com

ENHANCEMENT OF PPP THROUGH THE PPP FLEXIBILITY ACT

The program was originally set to expire on June 30, 2020, but on June 5, Congress enacted the PPP Flexibility Act, which extended and enhanced the PPP through August 8, 2020. The PPP Flexibility Act made it easier for business owners to have their loans 100% forgiven:

01 02 03 It increased the original 8-week covered period to 24-weeks.

It required at least 60% of the loan to be used on payroll costs (as opposed to 75% under the original legislation).

It allowed up to 40% of the loan to be utilized for non- payroll costs (an increase from 25% initially).