| The U.S. Senate Wednesday passed the bipartisan Paycheck Protection Program Flexibility Act (HR 7010), which had passed the House last week, 417-1. ASBC, AMIBA and our partners in the SAVE OUR ECONOMY NOW campaign are now calling on the President to sign HR 7010 into law immediately. HR 7010 loosens many of the most restrictive elements of the Paycheck Protection Program (PPP) by amending the following: - 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.
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