U.S. Congress JUST NOW passed new flexibility in spending PPP Loan proceeds
Last week the House passed a bill to extend the PPP loan timeline, among other features.
Today, the Senate agreed. The bill has been sent to the President for signature.
We will interpret the details and get that out to you. But for now, the basics are enough to provide a sigh of relief for those companies attempting to assure that their PPP loan will be forgivable.
The basics per CNBC:
"Under the proposal, small businesses would have to spend 60% of the loan money on payroll instead of the previous 75%. They could use the funds for six months, a change from two months.
The proposal would extend a June 30 deadline to rehire workers. It would also push back the timeline for repaying loans, and allow companies that get loan forgiveness to defer payroll taxes."
After the President signs the bill, we’ll get the first interpretation by the Feds, and get that information out to you.
You can expect a perfected interpretation to come out later in the form of regulations.
We will keep you posted.