Earlier today the House of Representatives passed a bill that would favor many small business owners. This bill is now sitting on the Senate to vote on. These legislative changes still have a few steps to go through before they are enacted into law.
H.R.7010 – Paycheck Protection Program Flexibility Act of 2020 passed by the house includes the following changes:
- It expands the covered period to 24 weeks from the date of loan origination (or December 31, 2020 whichever is earlier)
- Gives employers until December 31, 2020 to rehire to the same FTE levels before reducing forgiveness
- Removes the limit on the non-payroll costs (currently limited to 25%)
The Heroes Act is still sitting to be addressed by the Senate as well and includes other updates to the PPP legislation. It also includes expanded stimulus payments and a few other items geared at bolstering the economy. We are not through the ever-changing laws yet!