- Reducing the payroll allocation for borrowed funds from 75% to 60%, however, borrowers must spend at least 60% of the loan on payroll or none of the amount will be forgiven
- Borrowers can choose to extend the original “spend” period from 8-weeks to 24 weeks (which would extend the rehire deadline from June 30 to December 31st for employees) or they can choose to keep the original 8-week provision
- Several new exceptions have been added allowing borrowers to achieve full PPP forgiveness, even if the full workforce is not restored:
- Further flexibility if the borrower could not find “qualified employees”
- Further flexibility to restore business operations to February 15, 2020 levels due to COVID-19 related operating restrictions
- The repayment period has been extended to 5 years instead of the original 2 years. The interest rate remains at 1%
- Allowance for payroll tax deferral for two years with 50% of the tax due in 2021 and the balance due in 2022*
The bill still needs to be signed by the President, which is expected to be done at any time.