American College Of Surgeons - Inspiring Quality: Highest Standards, Better Outcomes

Legislative and Regulatory Updates

President Signs Legislation to Increase Flexibility in the Paycheck Protection Program

President Trump signed the Paycheck Protection Program (PPP) Flexibility Act June 4. This legislation will ease restrictions on the emergency small business loans intended to avert mass layoffs during the COVID-19 pandemic. Provisions of the law will relax rules for the $670 billion PPP, giving borrowers more time to spend funds received and to use those funds for a broader set of expenses while still qualifying to have all or a portion of the loan forgiven. More specifically, the PPP Flexibility Act does the following:

  • Extends the period for PPP loans from June 30, 2020, to December 31, 2020
  • Extends the period for loan forgiveness to the earlier of either 24 weeks after loan date or December 31, 2020
  • Extends the rehire exemption date to December 31, 2020, from the previous date of June 30, 2020
  • Decreases the forgiveness amount attributable to payroll costs from 75 percent to at least 60 percent and allows up to 40 percent to be attributable to nonpayroll costs

It has been reported that approximately $510 billion in loans have been approved through the PPP, and it is estimated that more than $120 billion remains available under the program. Lawmakers anticipate that relaxation of the rules could rekindle interest in the program.

Fellows are reminded that application for the PPP is accomplished via their local Small Business Administration-approved lender. Further information on the PPP is available on the Practice Protection Committee’s financial resources document.

Practice Protection Committee Webinar on Economic Survival Strategies Available for Viewing

The American College of Surgeons (ACS) Practice Protection Committee (PPC) hosted a webinar June 3, which focused on its recently released document on Economic Survival Strategies in the COVID World. The purposes of the document and webinar are to help surgeons get their personal and business finances on stronger footing in the wake of the COVID-19 response and to help them be better prepared to weather future disruptions to their practice and finances. The document can be viewed online. ACS members who were unable to attend the webinar live can access it here.

In addition, the PPC recently updated its financial resources document, detailing the flexibility changes in the Paycheck Protection Program and the reporting requirements for the CARES Act Provider Relief fund. That document can be accessed here.