President Donald Trump on Friday signed a bill into law designed to help small businesses pay back the loans they received during the coronavirus pandemic, according to Fox News.
The White House issued an announcement on Friday, highlighting the intended impact of Trump’s decision to sign House Resolution 7010.
Known as the Paycheck Protection Program Flexibility Act of 2020, the administration wrote that it “modifies certain provisions related to forgiveness of loans under the Paycheck Protection Program and allows loan forgiveness recipients to defer their payroll taxes.”
The bill sailed through the U.S. House of Representatives by a margin of 417-1 with only Rep. Thomas Massie (R-KY) voting against its passage.
It received similarly strong support in the Senate before reaching the president’s desk.
Congress allocated about $659 billion in the form of loans to small businesses as part of the PPP legislation passed earlier this year. Under certain circumstances, the loans would be turned into a grant and would not have to be repaid.
According to Fox News, the latest bill aims to assist those entrepreneurs by enacting multiple new provisions.
What is in the bill
In addition to tripling the existing eight-week time period during which businesses can use the money, it also “eliminates the cumbersome 75/25 restrictions that forced businesses to spend 75 percent of their loans on payroll and only 25 percent on other operating expenses like rent and utilities,” the outlet reported.
The new law reduces that disparity to 60% and 40%, respectively.
Those business owners still required to repay their PPP loans will be given five years to do so, an increase from the previous two-year deadline. The bill also provided six additional months for businesses to initiate a “good faith” attempt to offer laid-off employees their jobs back.
While this law has bipartisan support and is likely to help out a range of small businesses, the biggest boost will be a continually recovering economy.
When President Donald Trump announced the unexpected news of a steep decline in the unemployment rate this week, many are celebrating what they see as a sign that America truly is getting back on track.