U.S. Senate gives small businesses more PPP flexibility
The United States Senate has passed a bill that will increase the flexibility of the Paycheck Protection Program (PPP), a move that the National Association of Manufacturers (NAM) strongly advocated. The House passed the bill last week, and now it will go to the President’s desk. The bill:
Extends the time period in which PPP loan recipients must spend the proceeds from 8 weeks to 24 weeks, giving businesses more time to allocate dollars as necessary to combat the ongoing crisis;
Grants enhanced flexibility in how PPP loan dollars can be allocated between payroll and nonpayroll expenses;
Removes a reduced-headcount penalty for businesses facing workforce challenges; and
Allows businesses participating in the PPP to benefit from payroll tax deferment.
As NAM Director of Tax and Domestic Economic Policy Charles Crain has said, “The NAM will continue to fight for legislation like the Paycheck Protection Program Flexibility Act to ensure that manufacturers and manufacturing workers have the support they need to emerge from this crisis and lead our country’s economic renewal.”