House Approves Bill Providing PPP Flexibility
USAgNet - 06/01/2020
The House overwhelmingly approved H.R. 7010, by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), which would provide businesses with greater flexibility in how they use the Paycheck Protection Program (PPP) funds and still have their loans
The legislation would expand the amount of time businesses have to spend the money from eight to 24 weeks; eliminate a requirement that businesses need to spend at least 75 percent of the funds on payroll if they want the full loan amount to be forgiven; extend
the time period to rehire employees from June 30, 2020 to Dec. 31, 2020 and eliminate rehiring requirements; and clarify that employers in the PPP program can also benefit from the CARES Act payroll tax delay.
With House passage, the bill will now be sent to the Senate for approval. The PPP still limits businesses to fewer than 500 employees.