By Payroll and Entitlements Editorial Staff
The legislation aims to expand usability of the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s (P.L. 116-136) headliner small business loan program.
The bipartisan, bicameral-crafted HR 7010 makes several changes to the rapidly implemented Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). The bill, authored by House Reps. Chip Roy, R-Tex., and Dean Phillips, D-Minn., was approved in the House by a 417-to-1 vote on May 28. After a brief stall in the Senate, HR 7010 cruised through the upper chamber by voice vote on June 3.
Most notably, the legislation includes some of the following PPP changes:
- Extends the expense forgiveness period from eight weeks to 24 weeks;
- Reduces the 75 percent payroll ratio requirement to 60 percent;
- Eliminates the two-year loan repayment restrictions for future borrowers;
- Allows payroll tax deferment for PPP recipients; and
- Extends the June 30, 2020, rehiring deadline to December 31, 2020.
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