September 27, 2020

UPDATE: Senate Sends PPP Loan Expansion Bill To Trump for Signature

06/04/2020

On the evening on June 3, 2020, the Senate approved without objection a bill to make critical changes to the Paycheck Protection Program, giving businesses more flexibility in using the loans. Following input from One Voice, the Senate approved by Unanimous Consent the bill drafted and passed by a 417-1 vote in the House of Representatives last week. The legislation now heads to the White House for President’s Trump signature making many of the changes requested by NTMA and PMA.

The bill is retroactive to all loans created under the PPP, meaning all previous, current, and future loans now have the following changes, including an extension of the 8 week forgiveness period:

  • Extends the PPP loan forgiveness period from 8 weeks to 24 weeks after a loan is issued or through December 31, whichever comes first
  • Extends to December 31, from June 30, a period in which loans can be forgiven if businesses restore staffing or salary levels that were previously reduced (deadline to apply remains June 30)
  • Maintains forgiveness amounts for companies that were unable to rehire employees or resume business levels as of February 15, or find similarly qualified workers by the end of the year
  • Changes the limitation on forgiveness, by requiring businesses seeking loan forgiveness to spend at least 60% of covered funds on payroll expenses rather than the 75% established by the SBA (75/25 ratio changed to 60/40)
  • Allows businesses with forgiveness loans to defer payroll taxes

While this is an important victory for One Voice and our members, our work is not done. One Voice will continue to work with leaders in Washington to make additional changes and fixes to the program to ensure that the PPP can effectively support our members, and other small businesses, to help ease the financial burden of the COVID-19 pandemic. We heard directly from the top House tax writer yesterday that he is committed to overturning the IRS decision disallowing the deduction of wages as expenses for loan recipients. We also spoke last week with the House Small Business Committee, which is also working on additional changes on which we are providing input.

Thank you to the One Voice members who sent a note to their Senators, they clearly heard your voice. For more information and resources on COVID-19, visit www.onevoiceinfo.org.