Senate Approves House-Passed PPP Bill

Filed in Capitol Hill, Disaster Response, Economics by on June 4, 2020 8 Comments

100 billThis post was updated on June 5.

By unanimous consent, the Senate on June 3 approved legislation passed by the House last week that will liberalize rules under the Paycheck Protection Program (PPP) to give business owners more time to have the loans forgiven by the U.S. government. President Trump signed the legislation into law on June 5.

Under the PPP loan program, which passed Congress earlier this spring as part of the CARES Act, small businesses with fewer than 500 employees can take out loans equal to 2.5 times their average monthly payroll from 2019 with the total capped at $10 million. For many businesses that meet key conditions on the use of these funds, the loans may be forgiven.

The legislation approved by the House and Senate, called the Paycheck Protection Program Flexibility Act, will make it easier for small businesses to utilize funds under the PPP and still qualify for loan forgiveness. Specifically, the bill will:

  • Increase the timeline for businesses to spend their loan money on payroll in order for it to be forgiven from the current eight-week deadline to 24 weeks;
  • Extend the June 30 rehiring deadline for laid-off employees to Dec. 31;
  • Reduce the requirement that 75% of loan money must be spent on payroll in order for the loan to be forgiven  to 60%; and
  • Provide more leeway on loan forgiveness for employers if they show they were unable to rehire employees or reopen to business in a way that complies with safety standards.

Prior to Senate passage of the legislation, NAHB sent a letter to the Senate leadership in support of the bill and urged lawmakers to ensure the PPP guidelines align with congressional intent to allow more workers in the residential construction sector to access the loan program. Specifically, NAHB is urging Congress to provide a waiver from eligibility restrictions in the existing Small Business Administration 7(a) loan program to allow single-family and multifamily home builders, land developers, multifamily property owners and 501(c)(6) organizations access to the PPP.

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Comments (8)

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  1. Kathleen Ostrom says:

    Is there any help for local hbas to get grant money to pay staff expenses?

    • NAHB Now says:

      HBAs still cannot get grant money to pay staff expenses. NAHB continues to urge Congress to make 501(c)(6) organizations eligible for PPP loans. The House has passed a bill that would make 501(c)(6) organizations, including HBAs, eligible for PPP loans. However, the Senate has failed to act. NAHB continues to make this issue a top priority and it will be high on the agenda during our upcoming virtual Legislative Conference with members of Congress set for June 22-24.

  2. Barry Oxley says:

    Did they pass the 501 C 6 part? can we apply now?

    • NAHB Now says:

      Unfortunately, only the House has passed a bill granting 501(c)(6) organizations eligibility for PPP loans. The Senate has failed to act so HBAs cannot apply for PPP loans. NAHB is working diligently to call on Congress to pass legislation that will allow 501(c)(6) organizations to be eligible for PPP loans. This will be a top priority during our upcoming virtual Legislative Conference with members of Congress that will take place on June 22-24.

  3. John Olivieri says:

    We applied for and received PPP funds for our homebuilding , development, and multi-family companies. This was done after much consultation with our attorneys, CPA’s and bankers. How is it possible that we don’t qualify if we were actually granted the funds ?

    • NAHB Now says:

      Some builders and developers do qualify for the PPP funding; however, the SBA’s interim final rule on the program excludes a large percentage of home builders, land developers and multifamily property owners from eligibility in the PPP. NAHB is advocating for these restrictions to be removed so that more builders and developers can have access to the program.

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