Received the following from a non-profit that I work with. Looks like there is some movement in Washington to make some major changes to how the PPP program works.
Looks like a great opportunity for us to reach out to our Congresspeople regarding these bills.
"Returning to legislative advocacy on the Paycheck Protection Program, we anticipate that Congress soon will advance legislation to eliminate some of the problematic requirements that have served as obstacles to effective utilization of the program. As early as tomorrow, the House will vote on H.R. 6886, the “Paycheck Protection Flexibility Act of 2020.” This bill, introduced by Representatives Phillips (D-MN) and Roy (R-TX), is narrowly drafted and, if enacted, will:
Extend the covered period, the time that PPP funds have to be used, from 8 to 24 weeks; Extend eligibility for the program from June 30, 2020 to December 31, 2020; Extend the date that nonprofits and businesses have to rehire employees and qualify for purposes of loan forgiveness from June 30, 2020 to December 31, 2020; Extend the period for paying back portions of the loans that are not forgiven from 2 years to at least 5 years; Eliminate the SBA-imposed requirement that 75% of PPP loan proceeds be used to pay for payroll expenses and no more than 25% on rent and utilities; and Ensure that successful PPP applicants would now be eligible to defer 2020 payroll taxes, something that was prohibited under the CARES Act.
When the Senate returns next week, it likely will vote on S. 3833, the Paycheck Protection Program Extension Act, which was introduced by Senators Rubio (R-FL), Cardin (D-MD), Collins (R-ME), and Shaheen (D-NH). This bill will:
Extend the PPP application deadline from June 30 to December 31, 2020; Allow borrowers 16 weeks to use loan funds instead of 8 weeks; Allow borrowers to use loan funds to purchase personal protective equipment for employees and to pay for adaptive investments to reopen safely. Adaptive investments include modifications to property to comply with public health guidelines; Clarify that borrowers who have maintained payroll for 8 weeks will not lose forgiveness due to the program’s extension to 16 weeks; and Clarify that lenders will be held harmless for borrower certification and documentation used for the PPP their initial application and loan forgiveness materials."