Senate passes the Paycheck Protection Program Flexibility Act of 2020. The measure, which was passed by the House last week by a vote of 417-1, makes significant changes to the Paycheck Protection Program that are designed to help small business borrowers.
The key provisions include:
- Extends the time period in which borrowers must spend their PPP loans from 8 weeks to 24 weeks.
- Lowers the percentage of loan proceeds that must be spent on payroll from 75 to 60 percent.
- Extends the loan coverage period from June 30 to December 31, 2020.
- For the portion of the loan that isn’t forgiven, the measure extends the loan term from 2 years to 5 years.
The bill now heads to the president’s desk and is expected to be signed shortly.