Congress and the president have put into law several updates to the Payroll Protection Program (PPP). These changes will make it easier for organizations who have obtained PPP loans to receive forgiveness. Rule changes are listed below for your review.

  • Reduces amount needed for payroll to 60%
    This change reduces the amount of the loan that must be spent on payroll from 75% to 60%, thus increasing the amount of funds available for other expenses from 25% to 40%. This allows for more operational expenses to be counted in the formula.
  • Extends time period to use funds from 8 weeks to 24
    Organizations will still need to spend PPP funds on payroll and authorized expenses, but they now have until the end of 2020 to do so. This provides additional time to be able to count these expenses toward forgiveness.
  • Pushes back June 30 deadline to rehire workers to December 31, 2020
    Under the new law, organizations now have until December 31, 2020, to rehire workers in order for their salaries to count toward forgiveness.
  • Eases rehire requirements
    If an employee does not wish to be rehired or resume employment, it will not count against the organization’s total employee count for purposes of loan forgiveness. This also allows the organization to prove that it did not need that employee due to business levels not resuming to pre-COVID levels.
  • Extends repayment term from 2 years to 5
    If an organization does not qualify for forgiveness, which will be extremely rare, the repayment term will be five years rather than two. This provides additional time for the organization to repay the loan.

These changes will make it easier for most organizations to receive full forgiveness of their PPP loans. If you have any questions about these changes or want to request a coaching session with Attorney David Gibbs III concerning your organization’s decisions, please contact our office at 888-233-6255 or by email at