On Wednesday night Congress passed a Payroll Protection Program (PPP) reform bill. The bill gives small business owners more flexibility and time to use the loan money and still qualify for loan forgiveness.
The PPP was initially passed as part of the CARES Act. The reform bill would extend the 8 week period in which businesses must use the money to qualify for forgiveness to 24 weeks. In addition the reform bill now allows small businesses to use up to 40% of the funds for business costs and 60% for payroll. The initial bill set the ratio at 25% business costs and 75% payroll.