On May 29, the House of Representatives approved the Paycheck Protection Program Flexibility Act (PPPFA) by a vote of 417 to 1. The legislation includes a number of targeted changes to the existing Paycheck Protection Program (PPP).
Specifically, this legislation aims to address a number of challenges that businesses were facing when utilizing the PPP, including:
- Allowing forgiveness for expenses beyond the 8-week covered period to up to 24 weeks.
- Easing restrictions by limiting non-payroll expenses to 40% of loan proceeds, up from 25%.
- Extending the loan program availability to December 31, 2020.
- Permitting all loans to amortize over 5 years, which is up from 2 years.
- Allowing full access to payroll tax deferment for businesses that take PPP loans.
- Providing a rehiring safe harbor for businesses unable to rehire employees.
Senator Rubio (R-FL), Chairman of the Senate Small Business Committee, has expressed concerns with the House-passed bill. So, look for the Senate to consider its own version of this legislation when it returns next week.
For more information on NMHC’s advocacy work during the COVID-19 crisis, please visit the NMHC COVID-19 Hub.
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