On May 28th the House of Representatives passed a House bill called the Paycheck Protection Flexibility Act, H.R 7010. This bill provides some favorable changes to the rules surrounding the Paycheck Protection Program.
Some of the changes include:
- Potential expansion of 8-week covered period to 24 weeks or December 31st
- Reduction of required allocation of use of proceeds on payroll from 75% to 60%
- Increases the repayment period for loan proceeds not forgiven from 2 to 5 years
- Allow deferral of loan payments of 12 months
This senate will take up this bill and may have their own ideas for changes. Let’s hope for a smooth ride through the rest of the legislative process. https://www.congress.gov/bill/116th-congress/house-bill/7010/text?r=1&s=1