June 03, 2020

Law360 Quotes Allyson Baker on the Paycheck Protection Program Flexibility Act

1 min

On June 3, 2020, Allyson Baker was quoted in Law360 on the Paycheck Protection Program (PPP) Flexibility Act, a measure that would give more time and flexibility to employers who receive forgivable loans from the Small Business Administration's emergency loan program. The Senate passed the measure by unanimous consent on May 3, sending the House-passed bill to President Trump, who is expected to sign it.

According to the article, the PPP Flexibility Act would give employers 24 weeks to spend the money and have the loans forgiven, tripling the current covered period of eight weeks. While an earlier version of the bill would have eliminated any requirement about how much companies must spend on payroll, the final text instead lowers the threshold from 75% to 60%.

Baker said the lower payroll threshold would help many employers. "There are some companies with relatively low labor costs that are otherwise resource-intense businesses," she said. "There are also companies that are in high-rent jurisdictions that likely spend a higher percentage of overhead on rent."

Click here to access the article.