On Wednesday, May 4th, the Senate passed House Bill H.R.7010, the Paycheck Protection Program Flexibility Act of 2020. Upon signature by the President, this bill becomes law.
The bill modifies provisions in the original Paycheck Protection Program to allow small businesses more flexibility to use the loan money and to meet forgiveness provisions.
Importantly, the covered period during which businesses may use Paycheck Protection Program funding for eligible expenses extends from 8 weeks to 24 weeks.
Additionally, the original guidelines required that 75% of the loan be used for payroll expenses in order to be forgiven, but that amount is reduced to 60% of the loan amount. This modification allows businesses an increased flexibility to use some of the funds for non-payroll operating expenses.
For more information on the Paycheck Protection Program, please see our prior post: “Paycheck Protection Program: Calculating Payroll Costs”.
abeo Management Corporation (abeo) serves as a leading source of revenue cycle management and practice management with a specialization in anesthesia. The company leverages its people, processes, and software to serve independent practices, surgery centers, hospitals and healthcare systems with a scope of services that include billing, coding, transcription, practice management, and business consulting.