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House Passes Legislation on PPP Loan Forgiveness Rules

Today the House of Representatives overwhelmingly passed legislation regarding the Payroll Protection Program (PPP) loans. The vote was 417 to 1. There is broad support in the Senate for the major provisions of the legislation. Many employers who received PPP Loans have been struggling to meet the requirements for total loan forgiveness.

If the bill makes it through the Senate and White House, the major impacts relating to the PPP loan forgiveness program will be as follows:

  • Increases the “forgiveness period” from 8 weeks to 24 weeks.
  • Decreases the requirement that 75% of the loan be paid for payroll costs to 60%.
  • Expands the repayment period for unforgiven loans from 2 years to 5 years.
  • Extends the June 30 “safe harbor” deadline to rehire workers.

The BP team will continue to provide updates as information is released with respect to PPP loan forgiveness.

Berntson Porter is here to help you navigate these unprecedented times. Visit our online Resource Center for up-to-date information about COVID-19 legislation that impacts you and your business.