Important changes have been made to the Paycheck Protection Program (PPP) and are awaiting the signature of the President:
On May 28, 2020, the House of Representatives passed the following important changes to the Paycheck Protection Program:
- The covered period of the loan is changed from 8 weeks to the earlier of:
- 24 weeks following loan origination; or
- December 31, 2020
- The requirement to use 75% of loan proceeds for payroll costs has been reduced to 60%
- The date in which an employer must restore full-time equivalents and salary reductions is extended to December 31, 2020, from June 30, 2020
- Codifying the exemptions to reductions in full-time equivalents
- Rejection by employee to return to work after written offer
- Unable to find similarly qualified employees for unfilled positions
- Unable to return to the same level of business activity as before February 15, 2020, due to compliance with HHS, CDC, or OSHA requirements
