[WASHINGTON] – Today, the National Lumber and Building Material Dealers Association (NLBMDA) issued the following statement after President Trump signed the Paycheck Protection Program Flexibility Act into law. This NLBMDA-backed legislation will ensure additional flexibility for small businesses that utilize the Paycheck Protection Program (PPP).
“NLBMDA is pleased that the White House and both parties in Congress came together to pass significant improvements to the Paycheck Protection Program,” said Jonathan Paine, NLBMDA President & CEO. “NLBMDA has been making the case that these changes are crucial for LBM dealers and this win will ensure greater flexibility for small businesses that utilize the PPP. NLBMDA will continue to press Congress to pass a Phase 4 relief package that fully reflects the priorities of the lumber and building material industry.”
Summary of the Paycheck Protection Program Flexibility Act:
- Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks.
- Employers can continue to apply for a PPP Loan through June 30, 2020. New PPP borrowers will have a 24 week covered period, but they can’t extend beyond December 31, 2020.
- Increases the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent.
- Lengthens the loan maturity date from 2 to 5 years.
- Ensures full access to payroll tax deferment for businesses that take PPP loans.
- Extends the loan forgiveness rehire date to December 31, 2020 to ensure small businesses won’t be penalized by high unemployment benefits.
- Creates a safe harbor for businesses that make a good-faith effort to hire or re-hire qualified employees.
- Allows borrowers who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
NLBMDA has been active in lobbying Congress for several weeks to implement changes to the Paycheck Protection Program.
NLBMDA was one of 55 outside organizations
to support the Paycheck Protection Program Flexibility Act after it was introduced.