House Passes Bill to Loosen Paycheck Protection Program Restrictions

The House passed a bill today to loosen restrictions of the Paycheck Protection Program. If this bill is approved by the Senate and signed by the President, there will be significant changes to the PPP. These changes will overhaul the program as we know it.

Some highlights of the new bill include:

• Extending the application window from a June 30, 2020 deadline to apply for a PPP loan to a deadline of December 31, 2020.
• An expansion of the loan forgiveness period from eight weeks to 24 weeks.
• Extending the deadline to rehire employees from June 30, 2020 to December 31, 2020.
• For future borrowers only, the Paycheck Protection Program Forgiveness Application would establish a minimum loan maturity period of five years, eliminating the two-year deadline under current SBA rules. This will not apply to borrowers who already applied.

We will continue to navigate these uncertain times and stay abreast of news that we believe is relevant for you and your business.

 

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.