Congress has been mulling a number of changes to the Paycheck Protection Program in response from borrowers who have growing concerns that they will not be able to spend the loan funds quickly enough.
The Paycheck Protection Flexibility Act, H.R. 6886, introduced by Reps. Chip Roy (R-TX) and Dean Phillips (D-MN) would expand the 8-week window to use loan funds to 24 weeks, while also eliminating the requirement that at least 75 percent of loan funds be used for payroll expenses in order to be eligible for forgiveness.
Meanwhile, two bills focused on changes to PPP have been introduced in the Senate. Yesterday, Sens. Rubio (R-FL), Cardin (D-MD), Collins (R-ME), and Shaheen (D-NH) sponsored the PPP Extension Act, which would extend the window to 16 weeks, and allow borrowers to use loan funds for PPE and other protective items.
Today, another group of senators introduced a Senate companion to the House bill, in hopes that the legislation can move quickly through both chambers. However, the Senate has adjourned until the end of May, likely delaying passage of either bills until next month unless no senator objects and the legislation can be passed by unanimous consent next week.
