Congress approves sweeping changes to PPP
The Senate last night unanimously approved the House bill that will increase flexibility for small businesses to use loan funds received through the Small Business Administration Paycheck Protection Program (PPP).
Important Changes in the Bill sent to the President include:
- · Extends the period during which proceeds must be spent for loans to be forgiven from an eight (8) week period to twenty-four (24) weeks, or until December 31, 2020, whichever comes first.
- · Businesses will have up to five years, instead of two years, to repay any money owed on a loan.
- · The percentage of PPP proceeds that can be used for rent and other approved non-payroll expenses increases from 25% to 40%. Eligible payroll expenses must now be at least 60% of loan proceeds.
- · Allows PPP loan recipients to defer 2020 payroll taxes into 2021 and 2022
- · Extends the June 30 rehiring deadline to December 31, 2020
Once signed into law by the President, these new changes will stimulate new rule making by the US Treasury and The Small Business Administration. We will continue to keep you informed as new developments arise.