From our partners at Michael Best Strategies:
The U.S. Senate passed the House-passed bill to extend the Paycheck Protection Program.
The recently passed bill would:
- Allow recipients of loan forgiveness under the Paycheck Protection Program to defer payroll taxes.
- Lower current requirement that 75% of a loan be used on payroll to 60%. The remaining 40% can be used for other expenses including paying rent and utilities.
- Extend the amount of time the loan covers from 8 weeks (2 months) to 24 weeks (6 months) or Dec. 31, whichever comes sooner.
- Extend from 2 years to 5 years the time allowed to repay any money owed on a loan.
- Extend deadline to rehire workers from June 30 to Dec. 31, 2020.
The bill will now go to President Trump. For a full breakdown of what is in the bill click here.