Favorable interim rule on PPP Flexibility Act released

On June 11, new guidance reflecting the Payroll Protection Program Flexibility Act was issued by the Small Business Administration and U.S. Department of Treasury.  “Interim Final Rule on Revisions to First Interim Final Rule” These regulations are consistent with our understanding of PPPFA and favorably resolves the 60% “cliff” concern. 

• There is no 60% “Cliff” that could have invalidated loan forgiveness
• Borrowers can choose an 8-week period (if receiving the loan before June 5) or the 24-week period
• More guidance will be coming soon on loan forgiveness