Senate OKs Paycheck Protection Flexibility ActJune 4, 2020
Late last night, the U.S. Senate approved the Paycheck Protection Flexibility Act (H.R. 7010) which was passed last week by the House. The legislation will provide thousands of small businesses with meaningful relief as they struggle to survive the long-term effects of the COVID-19 pandemic.
Approval of the bill comes just one week after the bill was passed in the House 417-1.
H.R. 7010 was introduced in the House by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas) and companion legislation was offered in the Senate by Sens. Tim Kaine (D-Va.), Thom Tillis (R-N.C.), Debbie Stabenow (D-Mich.) and Cory Gardner (R-Colo.).
Below some of the key improvements the bill will make:
- Change the program sunset date from June 30, 2020 to December 31, 2020;
- Extend the rehiring deadline for loan forgiveness from 8 to 24 weeks;
- Lengthen the loan maturity date from 2 to 5 years;
- Extend the rehiring deadline to align with the expiration of enhanced Unemployment Insurance;
- Lower the forgiveness payroll expenses threshold from 75 percent to 60 percent; and
- Provide a “Borrower’s Choice” provision, which allows those who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
“These common-sense tweaks to a massive funding program will simply provide small businesses with the flexibility they need to weather this ongoing storm,” stated NSBA President Todd McCracken. “It is not just the survival of the business that is impacted but the livelihoods of their employees, their families and the communities they serve all now face serious problems related to the COVID-19 pandemic.”
President Trump is expected to sign the bill soon.
NSBA sent a letter to the Hill in support of H.R. 7010. In the letter, NSBA highlights that this legislation would provide enhancements to the PPP that serves as the lifeblood to thousands of small businesses, and we hope it is swiftly considered and passed by the Senate. It is not just the survival of the business that is impacted but the livelihoods of their employees, their families and the communities they serve all now face serious problems related to the COVID-19 pandemic unless Congress acts–and time is running out to make these fixes.
Click here to view NSBA’s letter in support of the bill.
Click here to view NSBA’s statement of support on passage of the bill.