The Senate just approved changes to the Paycheck Protection Program that will drastically improve small businesses’ flexibility in using coronavirus rescue funds to stay afloat.
The Daily Caller reported on Thursday:
The Senate passed legislation Wednesday night to create changes to the Paycheck Protection Program (PPP), which provides help for small businesses struggling during the coronavirus pandemic.
The PPP was a part of the CARES Act, which provided more than $2 trillion in relief for workers, hospitals and those in need across the country. The bill passed by unanimous consent. The Paycheck Protection Program Flexibility Act gives small businesses flexibility to use loans for coronavirus.
Instead of the 75% of the loan small business would have to use on payroll, they are now only have to use 60% on payroll under the new legislation, and the bill alos allows companies to defer payroll taxes if they also get loan forgiveness, according to NBC News.
American small businesses are reeling from the effects of mandatory coronavirus shutdowns, only to be forced back into hiding by widespread protests and riots in hundreds of cities across the nation, making legislative action to support small businesses even more imperative than ever.
The bill has been sent to President Trump’s desk for approval.