Paycheck Protection Program (PPP) Changes

The President signed the PPP Flexibility Act last Friday, June 5th. As a business leader, here are the highlights you need to know:

  • The forgiveness period is extended from eight weeks to 24 weeks.
  • The ratio of payroll/non-payroll allowable costs changed from 75/25 to 60/40.
  • The loan terms are extended from two years to five  years.
  • The time businesses have to use their PPP funds has increased from eight weeks to 24 weeks.
  • The percent available to use for non-payroll increased from 25 percent to 40 percent.
  • The length of the loan for non-forgiveness amounts of the loans increased from two years to five years.

This is all good news, however the exact details and guidance of what this actually means has NOT been provided yet. AND,  as we’ve learned through all of this, the devil is always in the guidance details.

Main Street Lending Changes

Additionally, Main Street Lending was tweaked again to lower loan minimums to $250,000 and extend repayment to five years. However, the program has yet to launch. Here’s an overview of those alterations.

    • The minimum loan amounts decreased to $250,000 from $500,000 on the New and Priority Loan facilities.
    • Principal repayment is changed to deferment for first two years then payable in years three though five ( 15%, 15% and 70%, respectively).
    • No interest payments for one year.


The SBA will issue its interim final guidance in the near future in regard to the details of the PPP changes. Additionally the Federal Reserve expects to launch the Main Street Lending program very soon. Stay tuned.

Want a deeper dive for your business? Get in a virtual room with our coaches for a Government Assistance Relief Workshop. Click here for dates, times and sign up info. Our coaches will help you understand how to use your relief, gain forgiveness and possibly land additional funding for your business.

gov relief guidance workshop