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Wednesday evening the Senate passed the Paycheck Protection Program Flexibility Act, which eases rules around how small businesses can use their paycheck protection program (PPP) loan funds. The House passed the bill last week and the president signed the legislation into law today.
The Paycheck Protection Program Flexibility Act would give borrowers 24 weeks instead of eight weeks to spend the PPP funds, allow them to delay paying payroll taxes, and would only require them to spend 60% of the loan expenses on payroll costs instead of 75% as stipulated in the CARES Act, one of the coronavirus economic relief packages.
The PPP was established by the CARES Act and is implemented by the Small Business Administration, with support from the Department of the Treasury. The program provides small businesses, with 500 employees or fewer, funds in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities.
ASA is pleased to see legislation provide additional flexibility to physician practices with PPP loans and commends Reps Roy (R-TX) and Philips (D-MN), the original cosponsors of the bill, for ensuring small businesses receive economic relief from the challenges brought on by the public health emergency.
Check the SBA site frequently for updated information on the PPP
