Late on Wednesday, June 3, The U.S. Senate unanimously approved the Paycheck Protection Program Flexibility Act and it is expected that the President will sign this into law.
Original post: 5/28. Updates: 6/4
On May 29 , the House passed legislation giving more leeway to businesses in how they use PPP funds, yet still be eligible for loan forgiveness. The legislation includes:
- more time to spend the funds (24 weeks instead of 8)
- lower minimum amount that must be spent on payroll (60% instead of 75%)
- Extend the deadline for rehiring (from June 30 to December 31)
But the Senate still has to act.
Their proposal for overhaul would give businesses 16 weeks to use the funds and still qualify for forgiveness.
It appears that the Senate will not just pass the House Bill, due also in part to concerns that some wording may inadvertently have unintended consequences, that could create additional burdens on borrowers.