The House passed a bill on May 28, 2020 which would ease the restrictions on the Payroll Protection Loan requirements. The Senate will need to vote next week for the bill to pass, however, they have already proposed a plan similar to the House version.
Here are the key points in the House bill passed today:
- Reduce the amount of money required to be spent on payroll from 75% to 60% of the total loan funds.
- Extend the window to have the funds forgiven from 8 weeks to 24 weeks.
- Push back a June 30 deadline to rehire workers in order to not be penalized in the forgiveness calculation.
- Extend the repayment period from 2 years to 5 years.
- Allow businesses that get loan forgiveness to also take advantage of deferring payroll tax deposits.