President Donald Trump enacted the 2020 Paycheck Protection Program Flexibility Act on June 5.
Mandel Ngan | AFP | Getty Images
President Donald Trump on Friday signed a bill to give recipients of government small business loans during the coronavirus more flexibility in how they spend money.
The Senate passed the law by voice vote on Wednesday, after almost unanimity Approval of the house last week. The measure eases the conditions small businesses must meet to get paycheck protection program loans canceled, as some struggled to meet key thresholds during the pandemic.
Trump said the legislation “will particularly help restaurants, hotels and other businesses that have been hit very hard by the virus.”
The law project:
- Reduces the share of aid recipients that aid recipients must use on the wage bill from 75% to 60%
- Allows businesses to use the money for six months instead of two months
- Extends June 30 deadline for companies to rehire employees
- Gives loan recipients a longer period to repay loans
- Allows businesses with loan discounts to defer payroll taxes
Although the bill passed by voice vote this week, it was not passed by the Senate until Sen. Ron Johnson, R-Wisc., Obtained assurances on future changes. He wants the PPP to expire earlier than originally planned.
Congress first invested $ 350 billion in the small business loan program. After the government quickly distributed that money in a chaotic rollout, lawmakers invested an additional $ 310 billion in the P3, with $ 60 billion going directly to small lenders.
The president spoke shortly after the Bureau of Labor Statistics reported that the economy created 2.5 million jobs in May, dashing expectations of millions more jobs lost due to the pandemic.
The figures showed, however, that many of the jobs created came from temporary leaves and layoffs. The unemployment rate is 13.3% and the unemployment rates of minority groups remain high.
– CNBC’s Mike Calia contributed to this report
This is last minute news. Please check for updates.