May 28, 2020
Proposed Changes to PPP Program Pass First Congressional Hurdle
Posted by COVID-19 Rapid Response Team
The House passed the Paycheck Protection Program (PPP) Flexibility Act (H.R. 7010) on May 28 with an overwhelming bipartisan vote — a first step toward it becoming law. The bill was sponsored by Rep. Chip Roy (R-TX) and included a few key changes to the PPP:
- Extending loan repayment period from 2 to 5 years
- Extending the Covered Period to 24 weeks or December 31, 2020 (which means any loan funded by July 17, 2020)
- Revising the percentage of forgivable spending on non-payroll costs
- Allowing payroll tax deferrals even with loan forgiveness
It is important to note that passage of the bill in the House does not mean these changes have become the law. Ultimately, the Senate will need to take up the legislation, approve it and forward it to the President for signature. Until those steps are taken, the PPP program and guidance remain unchanged.
The Senate is currently considering several bills to amend the PPP, so the details of what, if anything, ultimately gets signed into law may change.
In addition, the House generally voted along party lines against another PPP-related bill, the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home (TRUTH) Act (H.R. 6782). This legislation would have required the SBA to publish significant identifying information about borrowers and lenders.
We continue to monitor the ongoing PPP legislative proposals and will provide updates as they arise.
These are unprecedented times. And we know you, your families and your organizations need support, now more than ever. Our top priority as your trusted advisor is to ensure we’re helping you through these tough times. Visit COVID-19 Rapid Response Resource Center for our crisis management resources and contact information for our COVID-19 Rapid Response Team Leaders.