Advocacy & Practice Updates — Advocacy & Practice
Senate Expected to Act on PPP Modifications
While timing on a vote is still unclear, Majority Leader Mitch McConnell (R-KY) noted that he hoped to bring legislation to modify the Paycheck Protection Program (PPP) to the floor of the Senate sometime this week. As we reported, the House passed the ‘‘Paycheck Protection Program Flexibility Act of 2020” (H.R. 7010) last week. The bill modifies the terms of forgiveness on the loans to reduce the percentage that must be spent on payroll from 75% to 60%, and allows for the remaining 40% to be spent on non-payroll costs such as overhead. In addition, the bill extends the loan period from eight to 24 weeks and lengthens the time from one year to five that borrowers have to repay any unforgiven portion of the loan.