Senate Passes Bill to Provide Flexibility for PPP Loans, Heads to President for Signature
This evening, the Senate passed the Paycheck Protection Flexibility Act (H.R. 7010) by unanimous consent. As we noted when H.R. 7010 passed the House last week, this legislation makes several changes to the Paycheck Protection Program (PPP) including: (1) extending the expense forgiveness period from eight weeks to twenty-four weeks; (2) reducing the minimum amount that must be spent on payroll to 60 percent from 75 percent; (3) allowing payroll tax deferment for PPP recipients; and (4) extending the June 30 deadline to rehire employees to December 31, 2020.
The bill overcame objections from Senator Ron Johnson (R-WI) who raised concerns over provisions requiring that, in order receive loan forgiveness, a business "shall use at least 60 percent" of the loan amount for payroll costs. Senator Johnson was concerned that, instead of giving flexibility to businesses as intended, this provision would prevent businesses from having any portion of their loans forgiven if they do not meet the 60 percent requirement. The measure now heads to the President for his signature.
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