Payment Protection Program (PPP)

Thursday, June 4, 2020

Senate Passes PPP Loan Flexibility Legislation by Unanimous Consent

On June 3, the Senate unanimously approved the Paycheck Protection Program Flexibility Act, passed by the House last week, that would ease the terms of the Paycheck Protection Program (PPP).

The bill would extend the forgiveness period for Paycheck Protection Program (PPP) loans from eight to 24 weeks, reduce payroll spending requirements from 75% of loan funds to 60% of loan funds, and extend the June 30th deadline for rehiring workers to the end of this year. Businesses would also have up to five years, instead of two years, to repay any money owed on a loan.
The legislation now goes to President Trump for his signature.

Congress Passes Interim Relief COVID (3.5) Legislation Replenishing the Paycheck Protection Program (PPP)

On April 21, the Senate passed by unanimous consent, H.R. 266, the “Paycheck Protection Program and Health Care Enhancement Act. The legislation includes:

• $310 billion in additional funding for the PPP

• $75 billion in additional funding for the Public Health and Social Services Emergency Fund (health care providers)

• $60 billion in separate disaster loans to small businesses

• $25 billion for COVID-testing

On April 23, the House passed the bill by voice vote, and the President is expected to sign the bill quickly.

This package is meant to provide interim relief. The Congress is expected to begin negotiations on the next package – Phase 4.

April 16, 2020

Department of the Treasury Guidance Regarding the Paycheck Protection Program (PPP)

Department of Treasury information fact sheet on the PPP, which authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the pandemic.