This post is current as of Friday, May 29, 2020.
The House passed a bill on Thursday to give recipients of the PPP loan more flexibility in using the funds. The PPP Flexibility Act is a bipartisan bill with an almost unanimous votes.
Under the House Bill:
- Businesses allowed to use the funds in 24 weeks instead of 8 weeks.
- Payroll costs must be a minimum of 60% funds spent instead of 75%.
- and salary/wage minimum must be restored by December 31 instead of June 30.
- The loan can be repaid in 5 years instead of 2.
The Senate is expected to vote on the bill next week. The Senate bill includes:
- Amending the timeframe to use funds to 16 weeks.
- Extending the deadline to apply for the PPP loan.
- Allowing businesses to use the funds to purchase protective gear for employees.
The President must also sign the bill before it becomes law.
Like other posts in the last two months, this information is subject to change, and we will post updates.
