Congress passes legislation to extend PPP loan deadlines
Share Now on:
Congress has passed legislation loosening the rules and extending the deadlines for the Paycheck Protection Program, which gives forgivable loans to small businesses to keep people on payrolls. It now goes to President Donald Trump for his signature.
The legislation is designed to smooth out a number of kinks in the program that businesses complained about. Initially, Paycheck Protection loans would only be forgiven if a business spent 75% of the loan money on payroll. The new bill lowers that to 60%. Businesses also have more time to spend the money — six months instead of two. That’s in response to businesses that complained that they couldn’t spend their loan money in such a short time frame when their workers didn’t have much to do, because they were still closed.
Without the new bill, the first businesses to receive Paycheck Protection loans would have to start paying them back next week. The legislation also defers payroll taxes for businesses getting the loans, and it gives them more time to repay any part of a loan that isn’t forgiven.
COVID-19 Economy FAQs
Are states ready to roll out COVID-19 vaccines?
Claire Hannan, executive director of the nonprofit Association of Immunization Managers, which represents state health officials, said states have been making good progress in their preparations. And we could have several vaccines pretty soon. But states still need more funding, she said. Hannan doesn’t think a lack of additional funding would hold up distribution initially, but it could cause problems down the road. “It’s really worrisome that Congress may not pass funding or that there’s information circulating saying that states don’t need additional funding,” she said.
How is the service industry dealing with the return of coronavirus restrictions?
Without another round of something like the Paycheck Protection Program, which kept a lot of businesses afloat during the pandemic’s early stages, the outlook is bleak for places like restaurants. Some in the San Francisco Bay Area, for example, only got one week of indoor dining back before cases rose and restrictions went back into effect. Restaurant owners are revamping their business models in an effort to survive while waiting to see if they’ll be able to get more aid.
How are hospitals handling the nationwide surge in COVID-19 cases?
As the pandemic surges and more medical professionals themselves are coming down with COVID, nearly 1 in 5 hospitals in the country report having a critical shortage of staff, according to data from the Department of Health and Human Services. One of the knock-on effects of staff shortages is that people who have other medical needs are being asked to wait.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.