U.S. House of Representatives Passes Bill Changing Key Elements of the Paycheck Protection Program
On Thursday, the U.S House of Representatives passed a billFN1 giving business owners more flexibility in how they use loans received through the CARES Act’s Paycheck Protection Program (“PPP”).FN2
The bill amends the PPP in several significant and favorable ways for business owners:
Lengthens the time companies have to use PPP loans in order to have the loans forgiven from eight weeks to 24 weeks;
Reduces the amount of the loan funds that companies are required to use on payroll from 75%, to 60%; and
Lengthens the repayment term for unforgiven loans from two years to five years.
Takeaway
It is anticipated that the U.S. Senate will pass this bill, or a similar version, when it returns to session next week. Campbell Litigation, P.C. will continue to provide updates to this and other COVID-19-related legislation.
Footnotes:
FN1 - See H.R. 7010, https://www.congress.gov/116/bills/hr7010/BILLS-116hr7010ih.pdf
FN2 - See our previous post, Cares Act and the Paycheck Protection Program, published on April 9, 2020, https://www.rockymountainemployersblog.com/blog/2020/4/9/cares-act-and-the-paycheck-protection-program