This week, one of those pieces of legislation called the Paycheck Protection Program Flexibility Act of 2020 just cleared the House by a vote of 417-1. Here is a copy of the bill. And courtesy of this press release from co-sponsor, Rep. Chip Roy (R-TX), here is a concise bullet-point summary of what the new legislation accomplishes:
- Extends the forgiveness period to 24 weeks
- Replaces the 75/25 rule with a 60/40 rule
- All new PPP loans will receive a 5-yr maturity. Existing loans will remain at a 2-year maturity.
- Allows businesses that receive forgiveness to also receive payroll tax deferment
- Ensures small businesses won’t be penalized by high unemployment benefits
- Creates a safe harbor for businesses that are required to open at only 50 percent capacity
The Senate is expected to consider the bill next week.
I may have more to say about this during today’s Zoom chat at Noon EDT. But, more likely, I’ll let my special guest Steve Browne do most of the talking during a truly “HR” edition of The Employer Handbook HR COVID-19 Chat.
If you’ve waited until the last minute to register, well, hurry up and register here.
And I’ll see you at noon.