On Wednesday evening, the Senate passed by unanimous consent legislation to provide businesses with more flexibility while using loans provided through the Paycheck Protection Program (PPP). Last week, the House passed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 6886) by an overwhelming vote of 417-1. Senator Mike Lee (R-Utah) and Senator Ron Johnson (R-Wisconsin) initially blocked plans to take up the House-passed legislation by unanimous consent, in opposition to a provision in the House bill that would push the loan application from June 30th to December 31st; however, late on Wednesday evening they agreed to withhold their objections while they work on further reforms. If signed by President Trump, which he is expected to do, the legislation would give borrowers under the PPP 24 weeks instead of eight weeks to use the funds, in a recognition that the coronavirus (COVID-19) pandemic has kept businesses sidelined longer than lawmakers expected.
The bill would also give businesses greater flexibility in where they use the money by lowering the amount they must spend on payroll to qualify for full loan forgiveness to 60 percent instead of 75 percent.