In a nearly unanimous vote, the House of Representatives passed a bill on Thursday to expand key provisions of the Paycheck Protection Program (PPP) that will help many small businesses in the RV industry.
Highlights from the Paycheck Protection Program Flexibility Act of 2020 (H.R. 6886) include:
- Allows loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extends the rehiring deadline
- Increases the current limitation on the use of loan proceeds for non-payroll expenses from 25 percent to 40 percent
- Extends the program from June 30, 2020 to December 31, 2020
- Extends loan terms (payback) from two years to five years
- Ensures full access to payroll tax deferment for businesses that take PPP loans
The Senate could pass the bill as early as next week. But, potentially complicating matters is the fact that the Senate is considering a similar bill, which includes significant differences from the House proposal. The Senate proposal maintains the so-called 75/25 rule and gives businesses 16 weeks, not 24, to use their funding. The Administration also has its own priorities it would like to see addressed. Although negotiations are ongoing, there is agreement between the House, Senate, and Administration that there is a sense of urgency to fix many of these issues and provide much needed clarity on PPP loans.