The Senate unanimously passed legislation that makes changes to the bipartisan Paycheck Protection Program (PPP) on Wednesday after the House approved the legislation last week. The Paycheck Protection Flexibility Act gives small businesses utilizing the loan program more autonomy in how the loans are used, and lengthens the period of eligibility for forgiveness. The legislation also extends the rehiring deadline for small businesses, allowing owners to give laid-off employees their jobs back, in order to meet the threshold for loan forgiveness. The bipartisan act also increases the percentage of loans that must be put toward payroll, from 75 percent to 60 percent, allowing small businesses to use the forgivable loans for other expenses.
The Senate has approved via unanimous consent the House-approved bill to give small businesses via the Paycheck Protection Program. No senator objected.
— Chad Pergram (@ChadPergram) June 3, 2020
The Senate and the House are now in alignment and the measure goes to the President for signature.
Yesterday, the Senate passed the #PPP Flexibility Act of 2020. Here’s what you need to know:
— Sen. Grassley Press (@GrassleyPress) June 4, 2020
- The loan forgiveness period for #smallbiz has increased from 8 to 24 weeks
- Now 60% must be on payroll
- The rehiring deadline is extended from June 30 to December 31, 2020
The Small Business Administration’s (SBA) landmark forgivable loan program has served as a lifeline for small businesses suffering economic distress during COVID-19. This legislation will fix logistical gaps in the program’s execution while also giving more flexibility to small businesses. The Paycheck Protection Flexibility Act heads to President Trump’s desk to be signed into law.