The CARES Act, which was signed into law on March 27, 2020, provided much-needed economic relief to businesses and employees affected by the COVID-19 pandemic. One of the CARES Act's key components was the Paycheck Protection Program (PPP), which offers forgivable loans to small businesses so that they can make their payrolls during the pandemic. However, the CARES Act included a number of restrictions that have hampered the effectiveness of the program.
But now there's some good news for small business owners: President Trump signed the Paycheck Protection Program Flexibility Act (PPPFA), which gives borrowers additional time and flexibility to use PPP loan proceeds. The legislation zipped through Congress with bipartisan support, and there's high hopes that the PPPFA will provide an additional boost for small businesses trying to claw their way out of the pandemic-induced economic crisis.
We've listed 7 of the most significant changes from the PPPFA. Read on to see how your business might benefit from the improvements.SEE ALSO: Answers to PPP Loan FAQs (Now That There's Fresh Funding for the Loans)