Small businesses that have expressed concerns over loan terms for COVID-19 relief may soon have less of a burden on their shoulders. A bipartisan group of senators reached an agreement Thursday on a bill that would ease restrictions to the government-backed loans, which can be forgiven if employers commit to maintaining their payrolls.
The legislation would increase the time for businesses to spend money while still qualifying for forgiveness from eight to 16 weeks. Additionally, it would allow them to use loan funds for the purchase of personal protective equipment (PPE) and other investments necessary in order to reopen safely and follow state and federal guidelines.
While the House plans to pass a bill next week that would also increase the time to spend the money (to 24 weeks), it includes a stipulation that businesses put at least 75% of the funds toward payroll. The Senate legislation does not include this provision.
KJK will continue to monitor any legislative developments and provide updates as soon as possible.
If you have questions or would like to discuss further, please reach out to Jennifer Hart at firstname.lastname@example.org or 216.310.4917.