Bipartisan legislation backed by Rep. Antonio Delgado (D-N.Y.) to make it easier for farms and small businesses to receive financial assistance from the Paycheck Protection Program during the coronavirus pandemic just became law.
The PPP will provide businesses in need with loans of up to $10 million, according to a statement from Delgado. The PPP Flexibility Act, signed by President Donald Trump on June 5, will make it easier for businesses to receive these loans and make forgiveness more accessible.
“Our small businesses and family farmers have faced unprecedented challenges throughout the COVID-19 pandemic,” said Delgado in a release. “This is a common sense, bipartisan law and should be the first of many steps to make sure small businesses have resources and support they can rely on.”
The PPP Flexibility Act also makes the following updates so benefits are more accessible:
- Extends the current 8-week covered loan forgiveness period to 24 weeks
- Extends the rehiring deadline to December 31, 2020
- Requires businesses to spend 60% of funds for payroll, down from 75%
- Creates a “safe harbor” for employers unable to rehire
- Lengthens the loan terms from two years to five years
- Allows PPP borrowers to continue to access payroll tax deferment
- Ensures borrowers will not have to make a loan payment until the SBA has made a forgiveness determination
“I am glad to see this legislation signed into law today to make the Paycheck Protection Program (PPP) work better for our business owners and farmers, and give them the flexibility to retain employees and assist with business expenditures,” said Delgado.