The Senate Wednesday (June 3) passed legislation giving thousands of restaurants, nail salons and other small businesses greater access to the Paycheck Protection Program, the federal lifeline designed to help them stay afloat during the coronavirus pandemic.
Some Republicans initially objected to the measure over technical issues and a desire to close loopholes to prevent the money from going to businesses less in need of financial help. But they agreed to pass the bill while they work on legislation to make further reforms.
The bill, which overwhelmingly passed in the House last week and is now headed to President Donald Trump's desk, loosens some key rules regarding loan repayment and spending restrictions of the PPP.
New changes would:
- Lower to 60 percent from 75 percent the minimum portion of the PPP loan that must be spent on payroll. The rest must be spent on rent, utilities and other business-related expenses.
- Extend from eight to 24 weeks the amount of time the loan can cover.
- Extend from two to five years the time new PPP loans must be paid back if the amount provided doesn't convert into a grant.
Check out the full article from USA Today here.