The Senate on June 3 passed legislation that will allow a greater portion of forgivable loans to small businesses to be used to pay fixed expenses, including utility bills.
The Senate passed by voice vote H.R. 7010, the Paycheck Protection Program Flexibility Act.
Under the Paycheck Protection Program (PPP), business loans from the Small Business Administration 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.
Among other changes to the PPP, H.R. 7010 would reduce that percentage to 60 percent.
The House passed H.R. 7010 by a vote of 417-1 on May 27.
The bill heads now to the White House for President Trump’s signature.
