Senate Upvotes Bill that Adds Major Flexibility to PPP
Upper chamber passes legislation that would lengthen period for using PPP funds and decrease the percentage of funds needed to be spent on payroll. The reform now goes to the President for signature.
- By David Kopf
- Jun 04, 2020
The Senate has passed legislation already approved in the House that, if signed by Pres. Trump, would make changes to the Paycheck Protection Program to provide additional relief to businesses such as HME providers.
Under the original PPP, to have their loan forgiven, business owners must spend their relief loan within eight weeks and they must spend 75 percent of that relief funding on payroll costs to get their loan fully forgiven.
The newly passed bill extends that spending deadline to 24 weeks and reduces the amount of the relief that must be directed toward payroll costs to 60 percent.
Also, the original deadline under the PPP to rehire workers who were laid off was June 30. That has been moved to Dec. 31.
Lastly, the new legislation extends the length of time providers would have to pay off any portion of a loan that is not forgiven from two years to five years.
David Kopf is the Publisher and Executive Editor of HME Business and DME Pharmacy magazines. Follow him on Twitter at @postacutenews.