- The senate passed a bill Wednesday night that would give small businesses more flexibility in how they can qualify for forgivable funds from the federal government's $670 billion Paycheck Protection Program.
- After an initially chaotic launch that included technological glitches as well as confusion among banks and borrowers alike, the program has doled out $550 billion, with $120 billion remaining left to be claimed.
- The new bill extends the time businesses have to use loan funds from eight weeks to 24 weeks, and reduces the amount that businesses are required to spend on payroll costs from 75% to 60%.
- It also extends the time businesses have to rehire workers, use the funds to pay them, and qualify for loan forgiveness from June 30 to December 31.
- With many businesses currently shut down or operating under capacity, the extended timeline increases the hope many have of qualifying for loan forgiveness.
- The bill now heads to the White House for approval.
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