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House Passes New Paycheck Protection Program Bill Aimed to Help Small Businesses

May 29, 2020

On May 28th, the House voted 417-1 to pass a bipartisan bill which grants relief to small businesses that cannot take advantage of the PPP loan program. The current guidelines operate to prevent significant numbers of small businesses to participate in the program. The new PPP bill adds much needed time and flexibility for small businesses to participate in and benefit from the program.  

The House version is now on its way to the Senate (which has its own version), and includes the following changes:

  • the amount of time the loan proceeds can cover is increased from 8 to 24 weeks;
  • the minimum percentage of the loan funds used for payroll expenses has been reduced from 75% to 60% (the 40% balance must be spent for rent and designated business expenses);
  • extending the time to repay the loan from 2 to 5 years (if not converted into a grant); and,
  • extending the rehire date from June 30th to December 31st.

Because things still remain unclear in Congress, if you are concerned about obtaining 100% debt forgiveness, it may be best to wait and see what happens in the legislative arena before filing your application.

Buckley King attorneys Frank Nagorney and Brent Buckley are monitoring the legislative and SBA developments, and are available to answer your questions.