DC Tax Flash: House Votes to Amend Paycheck Protection Program
The House today approved the Paycheck Protection Program Flexibility Act (H.R. 7010), which would make changes to the Paycheck Protection Program that provides forgivable loans to small businesses to retain and pay workers idled by the coronavirus outbreak. The bill passed overwhelmingly on a 417-1 tally.
H.R. 7010 would amend the Paycheck Protection Program to add greater flexibility for employers to access loans. It would allow small businesses up to 24 weeks to use the loans and extend the deadline for rehiring workers to the end of the year. The bill also "increases the current limitation on nonpayroll expenses (such as rent, utilities, mortgage interest) for loan forgiveness from 25 to 40%, removes retroactivity on the increase of maturity period from 2 to 5 years, clarifies Safe Harbors Language and extends borrower deferral," as summarized by House Majority Whip Jim Clyburn (D-SC).
The eight-page text of H.R. 7010 is posted here.
A similar bipartisan bill is pending in the Senate that could see action when the Senate return to session next week.
The House today also considered a bill (H.R. 6782) that would require the Small Business Administration (SBA), which administers the PPP, to publish:
- the identity of each recipient of assistance and an explanation of the decision-making process underlying such disbursal;
- the number of employees of each recipient and the date on which such assistance was disbursed;
- an identification of each lender or intermediary through which assistance was disbursed; and
- the amount of assistance disbursed to small businesses owned and controlled by socially and economically disadvantaged individuals, women, and veterans.
Although the bill garnered a majority of support, a two-thirds majority was required for passage under the expedited procedures by which it was considered on the House floor. The final vote tally was 269-147. As such, the bill did not pass the House. It may be reconsidered at a later date.
Miller & Chevalier Coronavirus Task Force
The outbreak of COVID-19 is creating significant business and legal challenges for companies throughout the world. In response to client demand, the firm has formed an interdisciplinary task force to help businesses navigate these issues.
This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.