Recently the U.S. House approved legislation making it easier for small businesses and other recipients of the Paycheck Protection Program (PPP) funding to qualify for forgiveness of the loans.
What to know?
- The bill extends to the recipients have to spend their funds which is 8-24 weeks.
- The measure lowers to 60% from 75% the portion of PPP funds borrowers must pend on payroll costs to qualify for full loan forgiveness.
- This change would allow borrowers to direct more funds rent, utilities, etc.
The bill (close to a vote in the senate) would double the covered PPP period, but would not change the 75% payroll cost requirement.