In the coming days, the U.S. House of Representatives is expected to vote on a bill (the “Proposed Bill”) addressing the Paycheck Protection Program (“PPP”). The Proposed Bill would extend the PPP loan forgiveness period from 8 to 24 weeks (or December 31, 2020, if earlier); eliminate the requirement that at least 75% of the PPP loan proceeds be spent on payroll costs; extend the maturity date of a PPP loan from 2 years to at least 5 years; and address rules for restoring employee pay and headcount in order to avoid the loss of loan forgiveness. The Proposed Bill would also allow a PPP borrower to delay payment of the employer payroll tax even if the borrower receives PPP loan forgiveness. More details and brief discussions of these points are set out in our newest Alert. The Alert can be found here.
Client Alert: Proposed Legislative Amendments to the Paycheck Protection Program – May 21, 2020
