The Senate cleared the way for much needed changes to the popular Paycheck Protection Program on Wednesday that will allow small businesses more flexibility in using the rescue loan funds. The bill, which overwhelmingly passed in the House last week and is now headed to President Donald Trump’s desk, loosens some key rules regarding loan repayment and spending restrictions of the PPP.
Highlights of the new changes would:
- Lower to 60% from 75% the minimum portion of the PPP loan that must be spent on payroll. The rest must be spent on rent, utilities and other business-related expenses.
- Extend from eight to 24 weeks the amount of time the loan can cover.
- Extend from two to five years the time new PPP loans must be paid back if the amount provided doesn’t convert into a grant.
