NY's Schumer Helps Avoid Potential Holdup
June 4, 2020
Congress has sent legislation to President Trump that makes much sought-after changes to the Paycheck Protection Program, commonly known as PPP. The biggest change is the percentages of the loans that need to be spent on payroll. The president signed the legislation on June 5.
According to CNBC, the legislation would make several changes to the PPP, which aims to help small businesses keep employees on payroll after public health measures designed to curb the pandemic forced them to shutter. Congress created it as part of the $2 trillion rescue package passed in March, and it includes stipulations for how companies can spend money and still get loan forgiveness.
Under the proposal, small businesses would have to spend 60% of the loan money on payroll instead of the previous 75%. They could use the funds for six months, a change from two months. The proposal would also extend a June 30 deadline to rehire workers. It would also push back the timeline for repaying loans and allow companies that get loan forgiveness to defer payroll taxes.
The House passed the bill nearly unanimously last week as Democrats and Republicans failed to reach agreement on how to structure the next steps to boost an economy devastated by the pandemic.
Senate Minority Leader Chuck Schumer, D-N.Y., tried to push the House-passed legislation through by unanimous consent Wednesday afternoon. Schumer contended that the Senate risked “too much delay” if it amended the bill and then had to go to a conference committee with the House to hash out final legislation. The House passed the proposal by a 417-1 margin last week.
“How many of the community banks here believe their customer service is average or below average?”