WASHINGTON—The U.S. Senate unanimously passed legislation on June 3 giving small businesses more leeway in using the Paycheck Protection Program (PPP), welcome news for many small business owners who have been worried about whether they will have their loans forgiven.
The legislation would give small businesses more time to use the relief fund by extending it to 24 weeks from eight weeks. In addition, borrowers would have to spend 60 percent—rather than the current 75 percent—of the funds on payroll to qualify for loan forgiveness.
