Dispatch #42 - Senate Approves House’s PPP Bill

Good news. We’re one step closer to Paycheck Protection Program (PPP) loan rules that will provide more benefits to contractors.

From the Wall Street Journal:

The legislation passed Wednesday with unanimous consent in the Senate, and passed the House last week 471-1, showing the bipartisan support to improve the Paycheck Protection Program, which was created by Congress in March to help employers struggling to stay open during the coronavirus pandemic.

The legislation extends the duration of PPP loans to 24 weeks from eight weeks, giving small businesses more time to use the money and still have the loans forgiven while helping them better navigate the uncertainties around reopening. It also extends the deadline to rehire workers to Dec. 31 to qualify for loan forgiveness.

Moreover, many businesses that sought loans were constricted by Small Business Administration regulations mandating that 75% of the expenses go to payroll. The bill reduces the level of Paycheck Protection Program funds that must be used for payroll to 60% from 75%.

The bill now heads to President Trump for a signature. The White House declined to comment on the legislation. A spokesman for the Small Business Administration, which manages the program, didn’t respond to a request for comment.

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