As the coronavirus continues to impact the U.S. economy, Federal lawmakers have passed the Paycheck Protection Program Flexibility Act (PPPFA) to loosen restrictions on original Paycheck Protection Program (PPP) provisions, making it easier on employers to weather the pandemic. Here’s what you need to know.
President Trump signed the Paycheck Protection Program Flexibility Act (PPPFA) on June 5, 2020, after the legislation passed first through the House of Representatives and then was approved by unanimous consent in the Senate.
These relaxed requirements help businesses that have already qualified for and received funds from the PPP.
Yet if you haven't applied for loans or heard back from your financial institution regarding your status, remember that the PPP application deadline is June 30, 2020, so act quickly. Many new tools make it easy to apply for funds, but beware scammers and other disreputable sources requesting information regarding your finances.
In essence, employers can view the PPPFA as an attempt to correct many of the issues found in the PPP.
Three of the main changes include:
Thankfully, the PPPFA also addresses employer concerns about rehiring former employees, including in the instance that a rehire offer is rejected.
Consider the following adjustments to staffing requirements:
*Note: According to the Small Business Administration (SBA), if an employee refuses your rehire or return-to-work offer, you can still qualify for loan forgiveness so long as your organization “made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower.”
It can’t be stressed enough that we live in an uncertain time. Additional amendments or adjustments may be implemented if coronavirus cases spike again, leading to stricter stay-at-home guidelines.
As always, we recommend staying as informed as possible on relevant state and local regulations to help keep your business and employees safe. If you’re considering returning your employees to work, consult our Return-to-Work Readiness Checklist to see how prepared you are to reopen and review CDC guidelines for reopening your workplace.