| The U.S. House took another step last week toward loosening many of the most restrictive elements of the Paycheck Protection Program (PPP) with the passage of the bipartisan Paycheck Protection Program Flexibility Act (HR 7010), sponsored by Reps. Dean Philips (D-MN) and Chip Roy (R-TX). Combined with House passage nearly two weeks ago of the HEROES Act (HR 6800), significant additional economic and health care relief now rests in the Senate. The American Sustainable Business Council (ASBC) and the American Independent Business Alliance (AMIBA) are calling on the Senate to SAVE OUR ECONOMY NOW by passing these two pieces of legislation. HR 7010 amends the PPP with the following measures: - Borrowers can apply for a PPP loan up to December 31, 2020 (assuming PPP funding remains available) instead of the original June 30 deadline;
- Instead of an eight-week period to spend PPP funds, borrowers have a 24-week period after the PPP loan is approved or until the end of 2020 (whichever comes first) to spend PPP funds and qualify for loan forgiveness;
- The requirement to spend 75% of a PPP loan on payroll costs for maximum loan forgiveness has been reduced to 60%;
- For new PPP loans approved after the law is passed, the loan term is five years. (Existing PPP loans would still have a loan term of two years);
- Borrowers can defer payroll taxes on PPP loan proceeds used for payroll.
ASBC and AMIBA are also strongly recommending the passage of the Paycheck Recovery Act (HR 6918), sponsored by Rep. Pramila Jayapal (D-WA), through the House as quickly as possible. The Paycheck Recovery Act advances the most comprehensive and maximally beneficial economic relief during this crisis. While the Paycheck Protection Program Flexibility Act addresses current gaps in PPP, only the Paycheck Recovery Act is scaled appropriately to meet the needs of all businesses in the U.S. Please help the ASBC and AMIBA advocate for the passage of these two pieces of legislation! | |
