Trump signs Paycheck Protection Program changes
The Paycheck Protection Program changes approved by Congress have been signed into law. President Trump Friday signed the Paycheck Protection Program Flexibility Act, which gives small businesses like farms and restaurants to use the PPP forgivable loans over a longer period of time and it allows more of the loan to be used for business expenses outside of payroll.
American Farm Bureau says they are hopeful the PPP Flexibility Act increases the number of farmers and ranchers utilizing the program.
The flexibility act extends the use from eight weeks to 24 weeks, removes the Small Business Administration rule saying no more than 25% of the loan forgiveness can be non-payroll costs, extends safe harbor provisions for employers rehiring or replacing workers this year. New PPP loans will have an extended repayment period of five years. Employers will also be able to defer payroll taxes regardless of whether the loan is forgiven or repaid.President Trump issued a statement Friday evening saying the Act is essential to protecting jobs as the nation begins to reopen the economy but questions its constitutionality since House members cast votes in proxy.