---
title: PPP Flexibility Act of 2020
description: On June 5, 2020 the Paycheck Protection Flexibility Act of 2020 (PPPFA) was signed into law. Below is a summary of the legislation's main points.
---

[PaySteady Blog](https://paysteady.com/blog)

# [PPP Flexibility Act of 2020](https://paysteady.com/blog/paysteady/post/ppp-flexibility-act-of-2020)

 Written by [Daniel Rafeedie](https://paysteady.com/blog/author/daniel-rafeedie) | June 7, 2020

 

On June 5, 2020 the [Paycheck Protection Flexibility Act of 2020](https://www.congress.gov/bill/116th-congress/house-bill/7010/text?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-9syuy5Cso2pbD9uYUdHP0a3_p_dRiNtATaz-xchCSmuMfmyfmYeAHjLqPdX2zoL22ulhqN) (PPPFA) was signed into law. The bill grants businesses more time and flexibility to use the proceeds from their Paycheck Protection Program (PPP) loans and remain eligible for forgivenes. Below is a summary of the legislation's main points.

**Paycheck Protection Flexibility Act of 2020** We encourage you to work with your tax advisor or accountant to understand how these modifications may impact your specific situation. 

- Businesses now have 24 weeks (and no later than 12/31/2020) to spend the money. This is an increase from the original 8 week covered period.
- Borrowers must spend at least 60% of the funds on payroll. This is a reduction from the original 75% requirement.
- Increases the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent
- Extension of the period of time for employers to reverse decreases in employment and/or wage levels that occurred between February 15 and April 26, 2020 from June 30, 2020 to December 31, 2020. 
- Businesses are now allowed to receive PPP loans and defer payroll taxes.  CARES Act originally made it an either-or choice.

As more guidance is released by the government, you can expect additional reporting and tools to become available.

[View full post](https://paysteady.com/blog/paysteady/post/ppp-flexibility-act-of-2020)

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