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On June 3, 2020, the U.S. Senate unanimously passed the House’s “Paycheck Protection Program Flexibility Act of 2020” (the “Bill”). The Bill seeks to amend the provisions of the Paycheck Protection Program (the “PPP”), which was established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) that was signed into law on March 27, 2020. The Senate’s approval sends the Bill to the President, who is expected to sign it.
The Bill’s key provisions provide:
(1) an inability to rehire individuals who were employees of the borrower on February 15, 2020, and an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or
(2) an inability to return to the same level of business activity that the business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020, and related to worker or customer safety requirements made necessary by the pandemic.
To visit our COVID-19 Business Resource Center, including our previous Tax Law Alerts, click here.