House Passes Paycheck Protection Program (PPP) Bill Giving Borrowers More Time To Rehire And Spend Loan Proceeds

This past Thursday (May 28) the House passed a bill (Paycheck Protection Flexibility Act, H.R. 7010) 417-1 alleviating the PPP fiscal deadlines looming in June mentioned in our previous blog post.

The bill:

-Gives PPP borrowers until December 31 (currently the deadline is June 30) to rehire to pre-pandemic employment levels if they want full loan forgiveness.

-Allows PPP borrowers to accumulate 24 weeks (up from the current 8 weeks) of eligible expenses (payroll, rent, and utilities) for forgiveness.

-Lowers the minimum amount of forgiveness that must be payroll expenses from 75% to 60%.

The Bill does not add appropriations to the program (currently $670 billion with approximately $510 billion approved to date).