H.R.7010 has passed both the House and the Senate and is expected to be signed by the White House momentarily. This bill provides much needed relief to the PPP program:
- The 8 week limit to spend their fund has been extended to 24 weeks;
- The requirement that 75% be spent on salaries has been reduced to 60%, meaning that not 40% can be spent on utilities & rent;
- The “workforce amnesty” provision that allowed employees to be replaced or rehired in sufficient number to replace the entire workforce was rolled back from June 30th to December 31st;
- There will be no payment due until five years after the borrower received the PPP loan (with the 1% interest in tact);
- Forgiveness for laid off employees who them, or a replacement, are not rehired if the borrower can show that they were unable to find similarly qualified employees or get that employee back; and
- Also, employers will be able to defer paying the 6.2% payroll tax that employers are charged for employees for a period of two years, regardless of whether the borrower receives loan forgiveness under the PPP program
There are no new talk of increased funding, thus if you were unable to apply that is unlikely to change. Still, for those lucky enough to meet the PPP requirements, this is great news.
For more information see the full text at: https://www.congress.gov/bill/116th-congress/house-bill/7010/text.