Senate passes bill enhancing PPP flexibility
The Senate passed a measure late Wednesday to increase flexibility in the Small Business Association’s Paycheck Protection Program (PPP).
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.
Specifically, the measure 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.
The President is expected to sign this legislation into law.