A bill designed to ease conditions for small businesses that sought loans through the Treasury Department’s Paycheck Protection Program was signed into law Friday, just days after the House and Senate approved the bipartisan measure.
The Paycheck Protection Program Flexibility Act extends the duration of PPP loans to 24 weeks from eight weeks, giving small businesses more time to use the money and still have the loans forgiven. It also allows borrowers to spend just 60%, rather than 75%, of their loan proceeds on paying workers, and gives them until Dec. 31 to rehire workers and still be eligible for loan forgiveness.
The legislation passed late Wednesday with unanimous consent in the Senate and passed the House on May 28 by a 417-1 tally, reflecting bipartisan support to improve the small business loan program. The initiative was created by Congress in March to help employers struggling to stay open during the coronavirus pandemic.
It has received $670 billion in funding through March’s $2.2 trillion CARES Act and April’s $484 billion relief package. There have been $510 billion in PPP loans approved as of Thursday, according to Small Business Administration figures.
