U.S. Senate Passes Paycheck Protection Flexibility Act
This evening, the U.S. Senate passed H.R. 7010, the Paycheck Protection Program Flexibility Act, by unanimous consent. This NLBMDA-backed legislation will improve the Paycheck Protection Program (PPP) by providing small businesses with greater flexibility when utilizing PPP loans. The bill passed the House of Representatives last Thursday and now heads to President Trump for his signature.
NLBMDA has been active in lobbying Congress for several weeks to implement changes to the Paycheck Protection Program. NLBMDA was one of 55 outside organizations to support the Paycheck Protection Program Flexibility Act after it was introduced.
Summary of the Paycheck Protection Program Flexibility Act:
Changes the program sunset date from June 30, 2020 to December 31, 2020.
Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks.
Increases the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent.
Lengthens the loan maturity date from 2 to 5 years. Existing loans remain at 2-years maturity.
Ensures full access to payroll tax deferment for businesses that take PPP loans.
Extends the loan forgiveness rehire date to December 31, 2020 to ensure small businesses won’t be penalized by high unemployment benefits.
Creates a safe harbor for businesses that make a good-faith effort to hire or re-hire qualified employees.
Allows borrowers who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
NLBMDA will be sure to pass along further guidance to members as it becomes available. For any questions, please contact Director of Government Affairs Kevin McKenney at kevin@dealer.org.
