WEST JORDAN (ABC4 News) – The Paycheck Protection Program now has more flexibility for small businesses. In a press release sent to ABC4 News from Congressman Ben McAdam’s office, the new version of the bill, The Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) takes effect just as the loan forgiveness applications are due from the small businesses who first received loans in early April.
“Utah led the country in processing these loans so that small businesses could provide paychecks to hard-working employees during the COVID-19 shutdown. Many small businesses, through no fault of their own, may not be open or fully functional within 8 weeks—the original deadline to spend the funds for loan forgiveness,” said McAdams. “Now they have more time and more flexibility to make qualifying expenditures for loan forgiveness.”
According to the press release, McAdams signed onto the legislation, which was endorsed by the bipartisan Problem-Solvers Caucus, after hearing from both lenders and small businesses about the need for improvements to the original Paycheck Protection Program (PPP).
Utah’s lenders processed nearly 48,000 loan applications totaling 5.2 billion dollars for Utah small businesses. The goal of the program is to help small businesses stay afloat and keep employees on the payroll during the shutdown required by trying to mitigate the risk from coronavirus.
In the press release, McAdams office said it will:
- Extend the PPP loan forgiveness period to include costs incurred over 24 weeks after a loan is issued, or through Dec. 31, whichever comes first. Businesses that received a loan before the measure is enacted could keep the current eight-week period.
- Maintain forgiveness amounts for businesses that were unable to rehire employees or find similarly qualified workers by the end of the year.
- Give borrowers greater flexibility to use the funds without limiting loan forgiveness.
The Small Business Administration will now be able to include the provisions in the guidance it prepares for lending institutions and small business loan recipients.