Rep. Ben McAdams says small businesses will now have more flexibility on terms for Paycheck Protection Program loan forgiveness thanks to House and Senate bipartisan legislation.
The Paycheck Protection Program Flexibility Act of 2020 takes effect as loan forgiveness applications are due from small businesses that received loans in April.
The program is designed to help small businesses during the economic shutdown response due to COVID-19.
McAdams signed onto the legislation after hearing from both lenders and small businesses about the need for improvement to the original program.
Utah lenders alone processed almost 48,000 loan applications which totaled $5.2 billion to Utah small businesses.
“Many small businesses, through no fault of their own, may not be open or fully functional within 8 weeks—the original deadline to spend the funds for loan forgiveness,” McAdams said. “Now they have more time and more flexibility to make qualifying expenditures for loan forgiveness.”
Some of the new benefits of the program include an extended PPP loan forgiveness program, maintaining forgiveness amounts for businesses that could not rehire employees, and giving borrowers more flexibility in using the funds.