By Nick Goldstein, vice president of regulatory and legal issues, ARTBA
The Senate June 3 overwhelmingly approved House-passed legislation to reduce the regulatory burdens of the Paycheck Protection Program, which provides emergency small business loans.
ARTBA supported a number of changes to the law passed in March to help employers weather the COVID-19 pandemic.
Key updates of the new bill, H.R. 7010, the “Paycheck Protection Flexibility Act of 2020,” include:
- increasing flexibility in how loan recipients can spend PPP funds by changing the amount of the loans which can be spent on non-payroll costs from 25 percent to 40 percent;
- extending the time period to spend the funds from eight weeks to 24 weeks; and
- providing additional flexibility under the program’s “safe harbor” date for rehiring employees and restoring their pay.
The legislation also extends the program application deadline to Dec. 31 from June 30, and increases the loan term to five years from two years.
The measure now heads to President Donald Trump, who is expected to sign it into law.