Senate Passes House Bill Giving Businesses More Flexibility With PPP Loans
Last night, the U.S. Senate passed a bipartisan House bill that would give small businesses more flexibility in how they use loans received through the Paycheck Protection Program (PPP). The Paycheck Protection Program Flexibility Act was passed in a unanimous voice vote and now goes to President Trump, who is expected to sign it.
The Paycheck Protection Program Flexibility Act amends certain provisions related to the forgiveness of loans under PPP, to allow recipients to defer payroll taxes and for other purposes. It extends the expense forgiveness period from eight weeks to 24 weeks, reduces the 75-percent payroll ratio requirement to 60 percent, eliminates two-year loan repayment restrictions for future borrowers, allows payroll tax deferment for PPP recipients and extends the June 30 rehiring deadline.
Rep. Chip Roy of Texas and one of the House bill’s co-authors, says, “I knew that Congress had to act quickly to provide flexibility to account for different business structures and operating expenses to make the program work. We also needed to restructure some of the loan terms. We were already watching our communities lose some of our favorite restaurants, shops, hotels and Central Texas haunts. We didn’t have much time to waste. We teamed up with my colleague, Rep. Dean Phillips of Minnesota, a Democrat, to get it done. Our hard work really paid off. Last week, the Paycheck Protection Flexibility Act passed the House overwhelmingly 417-1. I’d like to thank my colleagues in the House and Senate for working together to take swift, decisive action.”
For the full text of the House bill passed by the Senate, click here.