The House voted 417-1 to allow more flexibility for the Paycheck Protection Program loan forgiveness. The Senate is expected to vote on the bill next week. Lawmakers are pushing for the bill to pass because the first round of PPP loan recipients are closing in on the end of their eight-week covered loan period.
Here are some key highlights of the bill:
- More time to spend the loan proceeds and qualify for loan forgiveness– The House bill expands the 8-week covered period to 24 weeks or until the end of the year, whichever is sooner.
- Ability to spend more money on non-payroll expenses- The current requirement that 75% of the loan be used for payroll costs will be lowered to 60%
- Term of loan extended- Employers would have five years instead of two years to pay back loan money that was not forgiven
CTR will continue to monitor the progress of this bill and will update our clients accordingly.