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President Donald Trump Friday signed into law H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020. The bill passed the House overwhelmingly with bipartisan support and the Senate by unanimous consent. NAFCU is supportive of changes to ensure small business owners can use the Small Business Administration's (SBA) paycheck protection program (PPP) loan funds effectively to support employees and businesses.

Under the law, small businesses will have up to 24 weeks to use the loans and the deadline for rehiring workers would be extended from June 30 to the end of this year. It will also change the requirement related to the portion of PPP loan forgivable amount that must be used toward payroll from 75 percent to 60 percent.

Following its enactment, NAFCU released an updated version of its PPP FAQs noting these changes. In addition, Question No. 54 clarifies that although H.R. 7010 extended the covered period of loans, it did not extend the PPP's authorization date. This means that no new PPP loans may be disbursed after June 30, 2020, unless additional changes are passed. Question No. 3 also flags that H.R. 7010 changed the program's loan maturity from two years to five.

The association expects the SBA and Treasury to release additional guidance and interim final rules to address changes made by H.R. 7010.

NAFCU will continue to monitor potential changes to the PPP and remain in contact with the SBA, Treasury Department, and Congress to ensure credit unions can lend effectively through the program. The association has also shared ways to improve the program as the Senate considers Phase 4 relief provisions.