Congress Passes Much Needed Improvements To The PPP  

June 4, 2020 at 8:27 am Leave a comment

Amidst all the mayhem that is enveloping the country, a funny thing is happening: Congress is acting in a bipartisan way to address the country’s most immediate economic problems.

Last night, the Senate approved H.R. 7010, which makes much needed changes to the PPP.  In a change that will be particularly helpful for businesses in the downstate area of New York, the percentage of a PPP loan which must be spent on payroll in order to be eligible for loan forgiveness has been reduced from 75% to 60%.  The Bill also gives businesses more flexibility to meet payroll obligations and still be eligible for forgiveness.   The time period for spending money under the bill is extended until December 31, 2020 and the period during which the loan must be repaid has also been extended.

What is not entirely clear is whether additional loans can be granted under the program after June 30, 2020.  According to press reports, in order to receive unanimous consent for a voice vote, Senate Majority Leader Mitch McConnell agreed to a letter being included in the Congressional record classifying that June 30th is the cut-off date for new loans.

The bill now must be signed by the President.

Entry filed under: COVID-19, Federal Legislation, General. Tags: , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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