House and Senate working to increase PPP flexibility for small businesses
Both the House and Senate are working to make changes to the Paycheck Protection Program (PPP).
Last night, the House passed the Paycheck Protection Program Flexibility Act. The act makes several key changes to the PPP.
- Increases the timeline to use funds from 8 weeks to 24 weeks
- Reduces the required amount spent on payroll from 75 percent to 60 percent
- Extends the employee rehire date from June 30, 2020 to December 31, 2020
The Senate is working on a separate bill. Drafts of this bill show only a small increase in flexibility. This bill increases the timeline to use funds from 8 weeks to 16 weeks and keeps the required spending on payroll at 75 percent.
Most experts believe that legislation to increase flexibility if the PPP will become law, but it is not yet clear what exactly will be in that final bill.
KRS professionals are available and happy to assist with loan and grant applications. Visit the PPP FAQs page or KRS’ Coronavirus Resources Page for additional information. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.