PPP Flexibility Act is Now Law

The Paycheck Protection Program (PPP) Flexibility Act was signed into law on Friday, June 5, 2020. This act creates additional flexibility in the original PPP rules.

The extension provides additional time for employers to apply for a PPP loan under the program and to use the loan funds. Additionally, the Act reduces the 75% payroll costs rule to 60%, allowing borrowers to spend more loan proceeds on non-payroll costs and still be eligible for forgiveness. Lastly, the Act provides a safe harbor from the reduction in loan forgiveness amount due to a reduction in FTE employees if certain conditions are met.

Paylocity is revising PPP Loan Reports to ensure alignment with the PPP Flexibility Act changes. Outstaffing will continue to work with you to provide PPP support and loan forgiveness reports as needed.