Paycheck Protection Program Flexibility Act Extends Time for Using Funds from 8 to 24 Weeks; Reduces % of Funds That Must Be Used for Payroll; Extends Loan Repayment Period

June 6, 2020

On June 5, the President signed the Paycheck Protection Program Flexibility Act. This legislation makes some important positive changes to the Paycheck Protection Program:

It extends the time period to use PPP loan funds and still qualify for loan forgiveness from 8 to 24 weeks.
It reduces the amount of PPP loan funds that must be spent on payroll from 75% to 60% – i.e., it permits spending a greater percentage of proceeds on rent and other approved non-payroll expense while remaining qualified for loan forgiveness.
It extends the loan repayment period from 2 years to as many as 5 years for borrowers who do not qualify for loan forgiveness.

To Apply for a Second Draw PPP Loan

Your congregation will be required to certify its need for the funds and must have:

Received, and have expended or expect to expend, an original PPP loan
Experienced a 25% reduction in gross receipts in any quarter in 2020 compared to the same quarter in 2019
300 or fewer employees.

Determining Your Eligibility

To determine if you qualify, please click here to download a worksheet generously made available by diocesan auditors, PKF O’Connor Davies, LLP. Please note that this worksheet is offered “as is” and users use it at their own risk: in particular, please note the disclaimers on the Instructions tab, and review the outcome of your entries to make sure they make sense.

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