Washington, D.C. -- On Wednesday, the United States Senate passed H.R. 7010, also known as The Paycheck Protection Flexibility Act. The bipartisan legislation passed through the House of Representatives last week and with a majority of the Senate approving it, will now head to President Trump for final approval.
The legislation, among other things:
- Extends the Paycheck Protection Program loan forgiveness period to 24 weeks
- Replaces the 75/25 payroll cost use rule with a 60/40 rule
- Provides that all new Paycheck Protection loans will receive a 5-year maturity; existing loans will remain at a 2-year maturity
- Allows businesses that receive forgiveness to also receive payroll tax deferment
- Ensures small businesses will not be penalized by high unemployment benefits
- Creates a safe harbor for businesses that are limited to opening at 50 percent capacity
Pennsylvania businesses have received over $20 billion in Paycheck Protection Program loans as of the end of May.
In response to the Senate's approval of the bill, Congressman Fred Keller (R-PA) made the following statement:
“The Paycheck Protection Program has been one of the most crucial tools authorized as part of the federal government’s response to COVID-19. We have heard countless times how this program has saved small businesses on the verge of closing and kept employees hired so they can support their families during this uncertain time.
While helpful to many, small businesses and lenders have almost universally called for more flexibility in the program to ensure Paycheck Protection loans can be used most effectively to meet their intended end, which is to keep employees hired and help small businesses weather this pandemic.
I was proud to support the Paycheck Protection Flexibility Act in the House and will be glad to see President Trump sign this important measure into law for the benefit of small businesses and employees across the country.”