Paycheck Protection Program Loan Recent Developments

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.