U.S. House of Representatives Passes PPP Flexibility Act
The U.S. House of Representatives has passed the Paycheck Protection Program Flexibility Act in support of small businesses who received PPP financial relief and now need more flexibility in its use.
The bill, H.B. 7010, includes the following:
- Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks and extends the rehiring deadline;
- Increases the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
- Extends the program from June 30 to Dec. 31;
- Extends loan terms from two to five years; and
- Ensures full access to payroll tax deferment for businesses that take PPP loans.
The U.S. Senate has also demonstrated similar interest in supporting small businesses. TSCPA will continue to post updates as the bill moves forward.