PPP Changes Signed Into Law
The President signed the H.R. 7010 The Paycheck Protection Program Flexibility Act of 2020 into law last week. The bill previously passed the House and the Senate. The Paycheck Protection Program Flexibility Act was introduced by Rep. Dean Phillips (D-MN-3) and had a relatively easy passage in Congress given the bipartisan support in both houses. This bill makes two significant changes to the PPP loans. The first deals with how much of the money can be allocated to which types of expenses; currently 75% can be used on payroll and 25% towards rent, utilities and/or mortgage payments. Now businesses can use a 60/40 split, with 60% towards payroll and 40% to rent/utilities/mortgage payments. The second major change is it lengthens the time businesses have to use their loans. Currently loans must be used within 8 weeks; the bill extends to 24. While there are many other bills in both houses that would target COVID-19 programs and policies, it is unlikely that many of them will pass independent of a large package. For questions about Congress or PPP loans, contact NPMA's VP of Public Policy, Ashley Amidon, at email@example.com.