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Paycheck Protection Program Flexibility Act Eases Loan Forgiveness Restrictions

Business • June 8, 2020

DOWNERS GROVE, ILLINOIS (June 8, 2020) – The National Sporting Goods Association (NSGA) is pleased to see Congress approve revisions that provide more flexibility with the Paycheck Protection Program (PPP) for small business owners impacted by the COVID-19 pandemic.

The PPP Flexibility Act passed the House and Senate was signed by President Trump. The bill includes a reduction in the loan amount that needs to be spent on payroll and an extension of the time business can use their PPP funds.

“We are glad the government has provided some measure of help for retailers and dealers that NSGA lobbied for,” said Matt Carlson, NSGA President & CEO. “The revisions were not as extensive as we hoped, and we would have liked to have seen more relief given, but we are glad to see some flexibility for our members who secured a PPP loan. We will continue to act in the interests of retailer and dealer members.”

Here are the key components to the PPP Flexibility Act:

  • The loan amount required to be spent on payroll is reduced from 75% to 60% and the amount of funds available for other expenses increased from 25% to 40%. Those expenses include rent, mortgage payments, utilities and interest on loans.
  • Extended the period during which businesses may spend PPP loan funds from eight weeks after issuance to the earlier of 24 weeks after issuance or Dec. 31, 2020. (Eligible employers may elect to retain the eight-week covered period instead).
  • Specifies that PPP loans can be forgiven even if the number of full-time employees decreases, as long as the employer can prove that: 
    • it attempted to rehire the same number of employees, but its former employees were unavailable;
    • similarly qualified employees were unavailable;
    • or its business is unable to return to the same level of activity it had before Feb. 15, 2020.
  • Creating a minimum maturity of five years for PPP loans that still have a remaining balance after the government forgives part of them. The government would continue to guarantee the remainder of the loan.
  • The deadline to rehire workers was pushed back from June 30 to December 31, 2020.
  • Employers who take PPP loans can defer payroll taxes.

NSGA has important resources about the Paycheck Protection Program and more COVID-19 related materials and videos.

  • Click here for the COVID-19 Information and Resources Page.
  • Click here for the COVID-19 Reopening Resources Page.
  • Click here for our interactive State-By-State Resources map.

NSGA will continue to closely monitor the details of the CARES Act and what it entails for sporting goods retailers and dealers. The NSGA team is working remotely until further notice but you can contact us at (847) 296-6742 or