Changes for Paycheck Protection Program, Opportunity Zone Guidance, and Action on Infrastructure

Originally published by NAIOP on June 9, 2020.

Last week, the Senate unanimously passed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010). The legislation eases a number of requirements that must be met in order for PPP loans to be forgiven. Notably, H.R. 7010 extends the “covered period” during which PPP loans must be spent on eligible funds, from 8 to 24 weeks, and allows recipients to use up to 40% of loans on non-payroll expenses, up from the previous cap of 25%. Shortly after passage, President Donald Trump signed the measure into law. 

Recognizing the impact the COVID-19 outbreak has had on businesses, the Treasury Department also took action on Thursday, releasing new guidance that offers relief to Opportunity Zone (OZ) investors. As a result, individuals and firms will be granted additional time to roll qualified gains into an OZ fund and can avoid penalties if “reasonable cause” is demonstrated.