Coronavirus update 6/3/20
Breaking News - US Senate passes changes to PPP
We are very pleased to report that the Senate just approved H.R. 7010, the Paycheck Protection Flexibility Act. This bill will make a number of retroactive improvements to the PPP, including:
- 24-week covered period (instead of 8)
- 60/40 split (instead of 75/25)
- Loan forgiveness still possible if FTEs won’t come back, or if revenue in December is below Feb 2020 levels.
- Five year loan-repayment terms for future PPP loans
- Payroll tax deferment restored
Analysis of how the bill would change PPP for current users can be
The bill is expected to be signed into law by the president very soon. Expect a memo outlining its retroactive application and how you can take advantage of it after consulting with Treasury regarding implementation.
Our partners at the National Restaurant Association were the first ones to call for changes to the PPP after realizing it was broken for our industry. Massachusetts was one of the first states to reach and raise concerns after the provisions of the bill were released. Today's action is a much needed relief for Massachusetts Food and Beverage operations.
House Passes Restaurant Recovery Legislation
Today the Massachusetts House passed a comprehensive piece of legislation that will aid in restaurant recovery.
Included in the bill:
- authorizing mixed beverages to be sold to go
- cap on 3rd party delivery commissions
- addressing meals tax collection, late payment and interest accumulation
- formal streamline of the process to authorize increased outdoor dining opportunities for on-premises consumption
We thank the House of Representatives, especially House Speaker DeLeo and his leadership team, for quick action on this legislation. We look forward to working with the Senate on swift passage of this bill, so that it can get to the Governor for his signature.
We will provide a full summary of all these provisions as they become law.