Coronavirus Government Response Update—New Law Eases PPP Loan Rules

June 8, 2020 Coronavirus Government Response Update—New Law Eases PPP Loan Rules

Welcome to the Coronavirus Government Response Update. This information is intended to keep ISSA members up to date on fast-moving government affairs related to the COVID-19 pandemic, as well as other public policy issues important to the cleaning industry. Today’s update touches on U.S. President Donald Trump signing a law to ease Paycheck Protection Program (PPP) loan rules, U.S. Senators working on another PPP loan break, Republicans seeking to slow additional COVID-19-related aid, and more.

President Trump Signs Law Easing PPP Loan Rules
President Donald Trump signed into law the Paycheck Protection Flexibility Act, which makes it easier for small-business owners to qualify for loan forgiveness, according to Forbes. If your small business received some of the billions of dollars in PPP loans, you now have longer to spend that money. It also is easier to convert that loan into a grant, so recipients won’t have to repay it.

Senators Working on Another PPP Loan Break
Immediately after clearing a fix for the popular new small-business loan program, senators began seeking another one. The bill by Sen. John Cornyn (R-TX) would let recipients of forgivable loans under the PPP deduct their business expenses—even if those expenses were paid for with federal loan money that isn’t taxed. Sen. Cornyn, who introduced the bill (S. 3612), told reporters that Senate leadership was trying to pass the bipartisan measure but that it still faced some opposition, according to Roll Call.

Republicans Seek to Slow Additional Aid Following New Jobs Report
Some top Republicans see more reasons to slow efforts to pass another multi-trillion-dollar pandemic relief package after Friday’s surprisingly positive jobs numbers. The U.S. Labor Department’s report of a modest decline in the unemployment rate to 13.3% in May—instead of a rise to Depression-era levels many economists had been expecting—gave Republicans an additional reason to move slowly on a new aid package or at least scale back its scope. “The jobs report underscores why Congress should take a thoughtful approach and not rush to pass expensive legislation paid for with more debt before gaining a better understanding of the economic condition of the country,” said Michael Zona, spokesperson for Senate Finance Committee Chair Charles E. Grassley (R-IA), and reported by Roll Call.

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