Payment Protection Program flexibility provides small business owners additional relief
The U.S. Senate approved H.R. 7010 Thursday, the Paycheck Protection Program Flexibility Act, sending the bill to President Trump for his signature and delivering flexibility for American small business owners.
The House of Representatives passed the legislation in May.
This legislation extends the loan forgiveness period from eight weeks to 24 weeks and increases the loan maturity date to five years. It also adjusts the amount that can be used on non-payroll expenses, allowing up to 40% of the loan to be used for rent, utilities, and mortgages.
“The PPP has proven to be one of the most successful programs included in the CARES Act and continues to help small business owners keep their employees on the payroll and doors open to the public,” U.S. Congressman Roger Marshall said. “After hearing about the need for additional flexibilities in both the use of the funds and the timeline forgiveness, Congress responded. Now businesses that still need time to fully reopen or have additional expenses incurred due to Covid-19, can still use this program.”
Approximately $130 billion still remain available for PPP loans. Kansas lenders have helped more than 50,000 small business owners secure more than $5 billion in PPP funding, saving more than 400,000 jobs and keeping businesses open on main streets across the state.
“I have personally spoken with several lenders and small business owners who have used PPP to keep their businesses operational during this downturn,” Rep. Marshall said. “Many businesses would not be open today without this vital assistance.”