news.cuna.org/articles/117887-house-passes-bill-adding-additional-ppp-flexibility
Cap2

House passes bill adding additional PPP flexibility

May 28, 2020

The House passed the Paycheck Protection Program (PPP) Flexibility Act of 2020 (H.R. 7010) with a 417-1 vote Thursday. CUNA has called for further improvements to the PPP process, including lender liabilities and other challenges the Small Business Administration must address, most recently in a letter to the Senate Banking Committee.

During the debate, Rep Fred Upton (R-Mich.) cited credit unions when detailing why certain PPP changes were needed to get the funds to businesses.

Specifically, H.R. 7010 would:

  • Allow forgiveness for expenses beyond the eight-week covered period;
  • Eliminate restrictions limiting non-payroll expenses to 25% of loan proceeds;
  • Eliminate restrictions that limit loan terms to two years;
  • Ensure full access to payroll tax deferment for businesses that take PPP loans; and
  • Extend the rehiring deadline to offset the effect of enhanced Unemployment Insurance.