Trump Signs New PPP Relief

By Staff Writer June 08, 2020 259

President Donald Trump signed bipartisan legislation that will provide $320 billion in additional funding for the Paycheck Protection Program (PPP).

The bill also appropriates $60 billion more for the Small Business Administration’s (SBA) Disaster Loan Program.

In a press release June 3, the National Independent Automobile Dealers Association praised the legislation before it went to Trump.

NIADA CEO Steve Jordan
NIADA CEO Steve Jordan

“This bill provides much-needed flexibility to NIADA members and small businesses across the nation as they reopen and rehire staff,” said Steve Jordan, NIADA’s  CEO. “Economic recovery from a crisis like COVID-19 takes time, and this gives independent dealers the time they need to get their operations back up to full speed.” 

NIADA stated the legislation addresses concerns with the Small Business Administration’s forgivable PPP loans, which require businesses to use the money within eight weeks of receiving it to be eligible for full forgiveness. In addition to extending the time in which the loan funds must be used to qualify for full forgiveness from eight weeks to 24 weeks – through Dec. 31 – it would also reduce the percentage of PPP funds required to be used for payroll from 75 percent to 60 percent. 

Other provisions include eliminating the restriction limiting loan terms to two years, allowing businesses that receive PPP loans to also defer payroll taxes, and extending the deadline to rehire employees from June 30 to Dec. 31 to account for the effect of federally enhanced unemployment benefits. 

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Last modified on Monday, 08 June 2020 14:29

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