The House of Representatives on Thursday, May 28th passed new legislation that would make it easier for businesses to have their Paycheck Protection Program loans forgiven by relaxing restrictions on how the loan money can be used and extending the period that businesses have to use the funds.
- The bill would extend the forgiveness period for PPP loans from 8 to 24 weeks.
- Reduces payroll spending requirements from 75% of loan funds to 60% of loan funds, giving businesses more flexibility in deciding how to allocate the emergency funds.
- Extends from two to five years the time new PPP loans must be paid back if the amount provided doesn't convert into a grant.
- Extends deadline to rehire workers beyond Jun 30th to December 31st 2020.
- Allow PPP Loan recipients to defer Payroll taxes until the end of 2020
- Extends the deadline for applying for the loans until Dec. 31, from June 30.
- This bill is now headed to the Senate, where it is expected to pass.