Paycheck Protection Program Flexibility Act Passes the U.S. House of Representatives

On May 28, 2020, the U.S. House of Representatives passed a bill, called the Paycheck Protection Program Flexibility Act, in a 417-1 vote that makes changes to the PPP loan program that include extending the period for using loans to 24 weeks. It also would let borrowers spend just 60%, rather than 75%, of their loan proceeds on paying workers and still be eligible for loan forgiveness.

The Paycheck Protection Program Flexibility Act requires Senate approval; the Senate is set to return to Washington, D.C. next week. The White House and Senate Republicans have expressed support for extending the period for using loans. However, they have not indicated similar support for lowering the amount that borrowers must spend on payroll costs in order to obtain forgiveness. Stay tuned for further updates.