President signs bill to fix PPP

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Friday, June 5, 2020

WASHINGTON – President Trump has signed a bill that makes significant improvements to the Paycheck Protection Program.

The bill, which was passed by the House of Representative last week and the Senate this week, would give recipients nearly six months, instead of eight weeks, to use the funds they receive to qualify for loan forgiveness.

It would also allow recipients to spend just 60% of funds on payroll expenses, instead of 75%, allowing them to spend the remaining 40% on non-payroll expenses like rent, utilities and mortgage interest.

Additionally, the bill would extend the deadline for rehiring employees to Dec. 31, instead of June 30; and lengthen the time to repay any loan not forgiven to five years, instead of two years.

HME providers reported in a recent HME Newspoll that PPP funds were a “must have” for their companies during the current public health emergency.

Earlier this week, the National Community Pharmacists Association applauded the bill, saying “it’s clear the economy will take much longer to recover.”