June 8th COVID-19 Update
Paycheck Protection Program Flexibility Act Signed into Law
H.R. 7010, the Paycheck Protection Program (PPP) Flexibility Act of 2020, was signed into law last week.
The Paycheck Protection Flexibility Act creates more flexibility for borrowers using PPP funds. The bill extends the time for businesses to use the funds from 8 to 24 weeks and changes the ratio from 75:25 to 60:40 for payroll to other fixed costs.
The following is an overview of the legislation's main points:
- PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness.
- The payroll expenditure requirement drops to 60% from 75% but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs, but forgiveness isn't eliminated if the 75% threshold isn't met.
- Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30.
- Borrowers now have five years to repay any unforgiven amount of the loan instead of two.
What to Expect When You Travel from the Pensacola Airport
The Pensacola Airport is providing information for travels that are flying. Individual airlines are requesting that passengers wear a mask due to travel at close proximity, but please check with the airline directly for their specific travel requirements and precautions before arriving at the terminal. Due to social distancing requirements, you should arrive two hours prior to your flight to clear security without issue.
Click here to learn more about what to expect if you will be flying from the Pensacola Airport.