Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

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.

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