The U.S. House of Representatives passed a bill May 28 that amends provisions of the Paycheck Protection Program (PPP) to give small businesses more time to pay off the loans and more flexibility in how the money is used. The New York Times reports that the Senate is also working on its own version of updates to the program.
The version that passed the house includes the following updates, according to The New York Times:
- “Allow small businesses 24 weeks instead of eight weeks to spend the loan funds”
- “Eliminate a number of restrictions, including limitations on how the loan money could be spent”
- “Lower the percentage of money required to be spent on payroll in order to have the loan forgiven to 60 percent from 75 percent, allowing loan recipients to spend more funds on utilities, rent and other business expenses”
The Senate bill adjusts the timeframe for spending from eight weeks to 16 weeks and “it would allow recipients to use the funds—which were intended to primarily cover payroll expenses—to buy personal protective equipment for their employees, as well as renovations to accommodate additional safety measures, like installing a drive-through window, adding physical barriers or upgrading ventilation systems,” according to The New York Times report.
Stay tuned to hardwareretailing.com/covid for more updates.