House Passes Bill To Provide Flexibility On PPP Loans
The House passed a bill last week that would provide elements of flexibility for loans from the Paycheck Protection Program (PPP), addressing some of the key complaints with the program since inception. The appropriately named Paycheck Protection Program Flexibility Act passed by an overwhelming margin, 417 to 1.
The legislation modifies numerous provisions concerning PPP Loans to include extending the window businesses have to use funds from two months to six months, reducing the share of money that must be spent on payroll from 75 percent to 60 percent, extending the time recipients have to repay the loan as well as deferment of employer payroll taxes. It also pushes back a June 30th deadline to rehire workers to December 31st.
The Senate is scheduled to vote on the legislation this week, indicating that this bill will likely become law.