House Advances Bill Providing Flexibility for PPP Borrowers

As expected, the House today passed a bipartisan bill that would provide greater flexibility for Paycheck Protection Program borrowers. Introduced by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), the Paycheck Protection Program Flexibility Act would extend the maturity period for PPP loans made after the bill is enacted to five years; allow existing loans to be moved to five years with agreement between the borrower and lender; and extend the forgiveness period through the end of 2020.

The bill would also reduce the minimum amount that businesses must devote to maintaining payroll from 75% to 60%. The legislation—which passed the house by a 417-1 vote—now goes to the Senate, where a slightly different bill is in play.