PPPFA Guidelines Could Provide Help for Glass and Glazing Companies

The Paycheck Protection Program Flexibility Act (PPPFA), which is intended for small businesses, including glass and glazing companies, that qualified for the Paycheck Protection Program (PPP), was signed into law on June 5.

The new law addresses several points in the original PPP, which was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. First, borrowers now have more time to spend the loan proceeds. Previously, spending had to occur within eight weeks of receiving the loan proceeds. Now borrowers have 24 weeks after the loan
origination, or until December 31, 2020.

Second, there is now a reduction in the amount that needs to go to payroll costs in order to qualify for forgiveness. The new law requires that 60% of the loan proceeds be spent on payroll costs, down from 75% previously. Forgivable non-payroll expenses can be as high as 40% of spending, up from 25%. The new act also:
• Lengthens the loan maturity date from two to five years;
• Ensures full access to payroll tax deferment for businesses that take PPP loans;
• Extends the loan forgiveness rehire date to December 31, 2020;
• Creates a safe harbor for businesses that make a good-faith effort to hire or re-hire qualified employees; and
• Allows borrowers who received PPP loans prior to enactment to choose the covered period of their loan to last either eight or 24 weeks from origination.

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