CNBC
Published Thu, May 28 20201:14 PM EDT Updated Thu, May 28 2020 5:55 PM
Jacob Pramuck
The House passed a bill Thursday designed to give small businesses owners more flexibility in how they spend money from a key coronavirus aid program.
The chamber approved the legislation in a nearly unanimous 417-1 vote. The Senate has put forward a plan similar to the House bill, but has not yet passed it. Senators will not convene again until next week.
The Paycheck Protection Program, one of the core parts of the $2 trillion pandemic rescue package passed in March, includes standards for how companies have to use their loans in order to get them forgiven. The measure passed Thursday would ease those rules.
The plan would:
Published Thu, May 28 20201:14 PM EDT Updated Thu, May 28 2020 5:55 PM
Jacob Pramuck
The House passed a bill Thursday designed to give small businesses owners more flexibility in how they spend money from a key coronavirus aid program.
The chamber approved the legislation in a nearly unanimous 417-1 vote. The Senate has put forward a plan similar to the House bill, but has not yet passed it. Senators will not convene again until next week.
The Paycheck Protection Program, one of the core parts of the $2 trillion pandemic rescue package passed in March, includes standards for how companies have to use their loans in order to get them forgiven. The measure passed Thursday would ease those rules.
The plan would:
- Reduce the share of aid money small business are required to spend on payroll from 75% to 60% (the PPP’s architects aimed to encourage companies to keep workers employed)
- Extend the window businesses have to use the funds from two months to six months
- Push back a June 30 deadline to rehire workers
- Extend the time recipients have to repay the loan
- Let companies that get loan forgiveness defer payroll taxes
Full article here.
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