The US Senate approved a bill on Wednesday that will ease restrictions on emergency small business loans.
HR 7010, or the “Paycheck Protection Program Flexibility Act of 2020,” would amend the Small Business Act and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It would extend the covered loan period from eight weeks to 24 weeks, giving small businesses more time to spend the funds. Small businesses would also have greater choice in where they use the loan money. Loan recipients would only be required to use at least 60 percent of the loan for payroll costs, instead of the previously required 75 percent.