U.S. Congress Takes Up Expansion of PPP Loan Flexibility
WASHINGTON, D.C. — The U.S. House of Representatives voted Thursday to give small businesses financially strapped by the COVID-19 crisis more flexibility to spend forgivable loans for payrolls and expenses from the government’s popular Paycheck Protection Program (PPP), Bloomberg News reported.
The 417-1 vote sends the measure to the Senate, which may seek changes. The bill’s sponsors say urgent action is needed because the eight-week period when proceeds must be spent for loans to be forgiven will begin expiring Friday for the first loan recipients after the U.S. Small Business Administration program opened April 3.
The House measure would give companies much more time to spend the money — within 24 weeks or until the end of the year, whichever comes first — and still qualify to have their PPP loans forgiven. Businesses would also have up to five years, instead of two years, to repay any money owed on a loan and could use a greater percentage of proceeds on rent and other approved non-payroll expenses.