House passes bill adding additional PPP flexibility
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.