House to Consider Legislation Making Changes to Paycheck Protection Program Next Week
Speaker Nancy Pelosi (D-CA) announced today that when the House returns to session next week it will consider bipartisan legislation to ease restrictions on recipients’ use of Paycheck Protection Program (PPP) loans and enable greater loan forgiveness. The legislation—H.R. 6886, the “Paycheck Protection Flexibility Act,”—was introduced last Friday by Reps. Chip Roy (R-TX) and Dean Phillips (D-MN).
According to a summary of the bill, H.R. 6886 would amend existing PPP requirements to: (1) allow forgiveness for expenses beyond the 8-week covered period to enable businesses to spread the loan proceeds over the full course of the crisis; (2) eliminate restrictions limiting non-payroll expenses to 25 percent of PPP loan proceeds; (3) eliminate restrictions that limit loan terms to two years; (4) ensure full access to payroll tax deferment for businesses that take PPP loans; and (5) extend the June 30, 2020 deadline to rehire employees to offset the effect of enhanced Unemployment Insurance.
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