PPP Flexibility Act Passes U.S. House
May 29, 2020
The U.S. House of Representatives yesterday passed legislation to provide additional flexibility for borrowers who received loans through the Paycheck Protection Program (PPP). The Paycheck Protection Program Flexibility Act (H.R. 6886) would give borrowers 24 weeks (instead of eight weeks) to spend loan funds, allow them to delay paying payroll taxes, and only require that 60% of loan expenses be spent on payroll costs, rather than 75%, as stipulated in the CARES Act.
A related bill failed to pass the Senate in recent days; however, several reports suggest that the chamber may consider the House-passed bill next week. PPP loans are available to businesses, including hospitals, who meet eligibility criteria, including having 500 or fewer total employees.