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Restrictions On PPP Loan Conditions Eased

Small Business Administration

(Wikipedia Commons)

The Small Business Administration outlined changes made after President Trump signed the Paycheck Protection Program Flexibility Act into law on June 5. 

The law provides relief for small businesses forced to close during the COVID-19 pandemic. 

Under the original legislation, 75% of loan money had to be spent on payroll. That number has been reduced to 60%. 

“It extended the covered period for the loan forgiveness to 24 weeks," says SBA Administrator for the Great Lakes region Rob Scott. "It was eight weeks. It is now 24 weeks, after the date of the loan disbursement."

Scott says the new law allows for some flexibility for businesses that are unable to hire back workers that were on their payroll before February 15, 2020.

Since the original Paycheck Protection Program was signed into law in March, 74,758 loans have been approved in Indiana, for a total of $9.4 billion, according to the SBA. 

“We are currently sitting on $135 billion in available PPP appropriations, to lend out through lenders,” says Scott.

June 30 is the final day PPP loan applications can be accepted.

For the latest news and resources about COVID-19, bookmark our Coronavirus In Indiana page here.

Want to contact your legislators about an issue that matters to you? Find out how to contact your senators and member of Congress here.

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