Trump signs Paycheck Protection Program changes
June 6, 2020 By Larry Lee Filed Under: 2020 Events, Ag Credit/Lending, Ag economy, COVID-19, News
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.
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