Paycheck Protection Program Flexibility Act – Passed by the House

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Earlier today the House of Representatives passed a bill that would favor many small business owners. This bill is now sitting on the Senate to vote on. These legislative changes still have a few steps to go through before they are enacted into law.

H.R.7010 – Paycheck Protection Program Flexibility Act of 2020 passed by the house includes the following changes:

  1. It expands the covered period to 24 weeks from the date of loan origination (or December 31, 2020 whichever is earlier)
  2. Gives employers until December 31, 2020 to rehire to the same FTE levels before reducing forgiveness
  3. Removes the limit on the non-payroll costs (currently limited to 25%)

The Heroes Act is still sitting to be addressed by the Senate as well and includes other updates to the PPP legislation. It also includes expanded stimulus payments and a few other items geared at bolstering the economy. We are not through the ever-changing laws yet!

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Liz Mason is a serial entrepreneur, a giant nerd, and an involved accounting vanguard. She is the Founder of High Rock Accounting, Rebel Rock Accounting, TheDepartment.Tax, and a few other related brands. Liz speaks on a national stage, guests stars on podcasts, publishes a YouTube show (The Hot Accounts), and writes frequently. To further her passion for the advancement of the accounting profession, Liz currently serves as a Xero National Ambassador and as the Content Strategist for Tax Practice News. Liz started her career in tax at Grant Thornton (at 20) and automated a portion of her job landing her in the national tax practice. She spent a decade in large public accounting firms working on highly technical tax consulting before branching off on her own. Liz utilizes her creativity and passion at her company to uproot traditional practices and replace them with innovative concepts. She finds joy in efficient technology and her core belief is that everyone and everything can continuously improve (she says "be better" too often). When Liz isn't planning world domination in accounting, she is a die-hard skier, down for any adventure, plays the ukulele, reads everything, and has a good sense of humor. If you're looking for her, you can find her traveling the world and enjoying new food and cultures with her husband and young son. Follow Liz and High Rock Accounting on Twitter at @LizzyNorMa and @HighRockCPAs.