New legislation passed by Congress and signed by President Trump intends to make it easier for small businesses to spend Paycheck Protection Program (PPP) funds.

Key provisions of the Paycheck Protection Program Flexibility Act of 2020, signed into law on Friday, include:

• Allows loan forgiveness for expenses beyond the initial 8-week covered period to 24 weeks and extends the rehiring deadline.
• Increases the current limit loan proceeds for non-payroll expenses from 25 percent to 40 percent.
• Extends the program’s authorization through December 31. 
• Extends loan terms from two years to five years. 
• Ensures full access to payroll tax deferment for businesses that take PPP loans.
• Provides a rehiring safe harbor for businesses unable to rehire employees.

Additional bills have been introduced in both chambers that look to further reform the PPP program.

It’s likely additional PPP changes could figure into a broader COVID-19 package the Senate is expected to take up in late July.

So far, 4.5 million Paycheck Protection loans have been approved from 5,458 different lenders, totaling $511 billion.

The overall average loan size is $113,000.