The US Senate approved a bill on Wednesday that will ease restrictions on emergency small business loans.
HR 7010, or the “Paycheck Protection Program Flexibility Act of 2020,” would amend the Small Business Act and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It would extend the covered loan period from eight weeks to 24 weeks, giving small businesses more time to spend the funds. Small businesses would also have greater choice in where they use the loan money. Loan recipients would only be required to use at least 60 percent of the loan for payroll costs, instead of the previously required 75 percent. Borrowers could use up to 40 percent of the loan on mortgage obligations, rent obligations, or utility payments.
Borrowers would still qualify for loan forgiveness under these amendments.
The US House of Representatives passed the bill on May 28 in a vote of 117 to one. Now the bill goes to President Donald Trump, who is expected to sign the bill into law.
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