House approves changes to PPP

NCPA May 29, 2020

The House passed, H.R. 7010, the Paycheck Protection Program Flexibility Act, by a vote of 417-1. This bill extends the term for the forgiveness of PPP loans (24 weeks or until the end of the calendar year), allows for five years to repay any money owed, extends the rehiring deadline for loan forgiveness from eight to 24 weeks, and reduces the 75/25 rule to 60/40 so that at least 60 percent of PPP loan funds must be used for payroll. The Senate has been working on their own plan and it remains to be seen if the Senate will take up the House-passed legislation or if they will pursue a compromise. NCPA has been advocating for these revisions to the PPP, including signing onto a letter last week to Congressional leadership, Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza.