House Vote Expected Next Week on Bipartisan PPP Bill
The House is expected to vote next week on a stand-alone, bipartisan Paycheck Protection Program (PPP) bill. The measure, HR 6886, introduced by Reps. Chip Roy, R-Tex., and Dean Phillips, D-Min., would make a number of changes to the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s small business loan program.
Known as the Paycheck Protection Program Flexibility Act, it was originally included in the House-passed $3 trillion economic relief package narrowly approved last week. Senate leadership has made it abundantly clear the upper chamber will not take up that measure. Thus, the House is now moving to vote on the stand-alone PPP bill to enact a number of changes currently receiving both congressional and industry support.
The PPP bill, would implement the following changes:
allow forgiveness for expenses beyond the 8-week covered period;
eliminate restrictions limiting non-payroll expenses to 25 percent of loan proceeds;
eliminate restrictions that limit loan terms to two years;
ensure full access to payroll tax deferment for businesses that take PPP loans; and
extend the rehiring deadline to offset the effect of enhanced Unemployment Insurance.
Notably, the Trump administration has signaled its support for extending the forgiveness for expenses beyond the 8-week period. President Trump has said the extension "should be easy." Additionally, Treasury Secretary Steven Mnuchin told lawmakers this week during a Senate Banking Committee hearing, that the Trump administration wants to work with Congress to get it done.
If you would like to discuss further, please contact us. We will continue to generate updates as more information becomes available.
Jonathan Ciccotelli is the Partner-In-Charge of Meaden & Moore’s Tax Services Group. For over 29 years, Jonathan has worked closely with private and public companies in manufacturing, transportation, distribution, construction, and retail under a variety of business structures, including S-corporations, C-corporations, consolidated groups, and limited liability companies. He enjoys running, cycling, and cheering on his kids at sporting events.