The House on May 27 passed the Paycheck Protection Program Flexibility Act, which would allow a greater portion of forgivable loans to small businesses to pay fixed expenses, including utility bills.
The bill, H.R. 7010, passed by a vote of 417-1.
Under the Paycheck Protection Program, business loans from the Small Business Administration (SBA) are forgiven to the extent loan proceeds are spent on either wages or certain fixed expenses including mortgage payments, rent, or utility bills.
Currently, 75 percent of loan proceeds must be spent on wages. H.R. 7010 would reduce that percentage to 60 percent.
The legislation would make a number of other changes to the Paycheck Protection Program.
A competing version has already been introduced in the Senate as S. 3833, the Paycheck Protection Program Extension Act. The Senate bill would not increase the percentage of loan proceeds that could be spent on fixed expenses.
