COVID-19 UPDATE: PPP Fix Passed by Congress June 04,2020
The U.S. Senate unanimously voted to pass the Paycheck Protection Program (PPP) Flexibility Act, which now heads to the President for his signature. The House of Representatives passed the bill last week, also with bipartisan support.
The bill makes a number of significant changes to the PPP, each sought by the CRA and the National Restaurant Association as part of a grassroots and lobbying effort begun shortly after the PPP was first established. Changes include:
- Extending the expense forgiveness period from eight weeks to 24 weeks
- Reducing the payroll ratio requirement to 60 percent
- Increasing the loan repayment period from two to five years, on new loans
- Allowing payroll tax deferment for PPP recipients
- Extending the June 30 rehiring deadline
We know many of you still have questions and frustrations surrounding the PPP, especially if you received funding early in the process. We continue to advocate for fixes and additional funding that will address these concerns and will keep you posted as we learn more.