Senate Passes H.R. 7010 To Amend the PPP
June 3, 2020
Moments ago the senate passed H.R.7010, a bill to amend the Small Business Act and the CARES Act to modify certain provisions related to the forgiveness of loans under the paycheck protection program, to allow recipients of loan forgiveness under the paycheck protection program to defer payroll taxes, and for other purposes, passed by voice vote.
The Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) would:
- Extends covered loan period from eight to 24 weeks.
- Ensures full access to employer payroll tax deferment for businesses that take PPP loans.
- Relaxes requirement that PPP loans be spent on payroll costs from 75% to 60%.
- Provides a ‘rehiring safe harbor’ for businesses to still qualify for loan forgiveness if they are unable to rehire employees due to effects of enhanced Unemployment Insurance.
- Establishes a ‘safe harbor’ for businesses to qualify for loan forgiveness if they cannot return to full business operations due to state orders or restrictions.
The President is expected to pass the bill in short order.
Posted in Advocacy on the Move.