
President Trump Signs the PPP Flexibility Act into Law
The Paycheck Protection Program Flexibility Act, containing provisions supported by Worldwide ERC has been signed into law by the President
This week the U.S. Senate swiftly passed and the President signed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) into law. The new law contains provisions that assist the mobility workforce, ones that Worldwide ERC® has been vigorously advocating for during the COVID-19 pandemic (see our 20 April letters to the House and Senate). Worldwide ERC® last week sent a letter on 4 June to the Senate to thank leaders for the quick movement of the bill to the President.
Specifically, the bill would extend from eight to 24 weeks the timeframe in which PPP funds can be utilized, change a requirement that employers must spend 75 percent of the loan on payroll and 25 percent on non-payroll costs to 60 percent and 40 percent, respectively, and allow small businesses to have their loans forgiven under the PPP and still defer their portion of payroll taxes. These provisions provide helpful relief to the mobility workforce, many of whom are small businesses.
As we look ahead, Worldwide ERC® also asked Congressional leaders to provide businesses’ the opportunity to deduct expenses that are otherwise deductible if the business receives forgiveness under the PPP for those expenses when filing federal taxes. Such clarification is necessary as a recent IRS notice states that such expenditures cannot be deducted.
How This Impacts Mobility
Worldwide ERC® applauds the enactment of the Paycheck Protection Program Flexibility Act. Since the COVID-19 pandemic began, our advocacy efforts have been strategically focused on provisions that will help build a strong infrastructure for workforce mobility as we prioritize a safe return to business and the growth of the U.S. and global economies.
If you have questions about the new law or would like to get involved in our advocacy, please reach out to Worldwide ERC®’s Vice President of Government Affairs, Rebecca Peters at rpeters@worldwideerc.org.
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