CARES Act: Congress Passes the Paycheck Protection Flexibility Act

Summary

On June 8, 2020, U.S. Department of the Treasury (Treasury) Secretary Steven Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza issued a statement regarding the enactment of the Paycheck Protection Flexibility Act of 2020, 166 Cong Rec H 2332 (the Act), which Congress passed on June 3, 2020 and President Trump signed into law on June 5, 2020. The Act eases restrictions on Paycheck Protection Program (PPP) loans and gives business owners more flexibility in spending loan funds. The following are key provisions of the Act, along with clarifications made in the statement by the Treasury and SBA: