Congress Passes Bill Easing Paycheck Protection Program Requirements.

Congress Passes Bill Easing Paycheck Protection Program Requirements.

Lisa Nagele-Piazza, J.D., SHRM-SCP
June 7, 2020

President Donald Trump has signed into law a bill that gives employers more flexibility when using Paycheck Protection Program (PPP) funds and applying for loan forgiveness.

Lawmakers from both sides of the aisle supported making changes to the PPP to address complaints from employers that the existing rules were unfeasible. The U.S. House of Representatives passed the bipartisan Paycheck Protection Program Flexibility Act (PPPFA) in a 417-1 vote on May 28, and the Senate passed the bill by unanimous consent on June 3

Some key changes include an extension from the 8 week forgiveness period to a 24 week forgiveness period, a decrease in the minimum amount that must be spent on payroll from 75% to 60%, an increased loan maturity from two years to five years for new PPP loans and an extended deadline to rehire staff

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