Senate Passes Bill Lengthening Coronavirus Small-Business Loan Terms - Needs President's Signature
By Richard Cowan, Andy Sullivan, Reuters
The U.S. Senate unanimously approved legislation on Wednesday giving small businesses up to 24 weeks to use Paycheck Protection Program loans created during the coronavirus pandemic, up from the current eight-week deadline.
The legislation, already passed by the House of Representatives, now goes to President Donald Trump to sign into law. The program was created in March to support small businesses during the pandemic and encourage them to retain their employees.
Under the PPP program, loans for restaurants, hotels and other small businesses would convert into federal grants if recipients adhere to a set of conditions, including spending the loan amount within the required time.
Michigan Restaurant & Lodging Association Reports:
- Extending the expense forgiveness period from eight weeks to 24 weeks
- Reducing the payroll ratio requirement to 60 percent
- Increasing the loan repayment period from two to five years, on new loans
- Allowing payroll tax deferment for PPP recipients
- Extending the June 30 rehiring deadline