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On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act of 2020, which makes important changes to many aspects of the Paycheck Protection Program (PPP), including extending the minimum maturity period, extending the forgiveness period, reducing the payroll cost limitation on forgiveness, while eliminating forgiveness if such reduced threshold is not met, adding exemptions to employee rehiring requirements, revising the loan deferral period, and lifting the CARES Act’s prohibition on payroll tax deferral.  In light of the these changes, particularly with respect to the length of the forgiveness period, we anticipate that the Small Business Administration will update the PPP Loan Forgiveness Application.  We discuss the PPP Flexibility Act’s changes in detail here.

Crowell & Moring will continue to monitor and provide updates regarding developments in the PPP.