Removing Barriers Blog

President signs PPP flexibility legislation into law
Posted June 05, 2020 by CUNA Advocacy

The Senate passed a measure late Wednesday to increase flexibility in the Small Business Association’s Paycheck Protection Program (PPP).  President Trump signed the legislation into law earlier today.

CUNA has called for further improvements to the PPP process, including lender liabilities and other challenges the Small Business Administration must address, most recently in a letter to the Senate Banking Committee.

Specifically, the measure would:

  • Allow forgiveness for expenses beyond the eight-week covered period;
  • Eliminate restrictions limiting non-payroll expenses to 25% of loan proceeds;
  • Eliminate restrictions that limit loan terms to two years;
  • Ensure full access to payroll tax deferment for businesses that take PPP loans; and
  • Extend the rehiring deadline to offset the effect of enhanced Unemployment Insurance.