Paycheck Protection Plan or PPP loan borrowers are breathing a huge sigh of relief. In the afternoon hours of June 3rd, the Senate unanimously passed by voice vote the Paycheck Protection Plan Flexibility Act. This bill had been approved by the House last week on May 28th. The House’s vote was 417-1 with the lone dissent by Representative Thomas Massie (R-Ky).
As the bill heads to President Donald Trump’s desk for signature, across the country, tax professionals are starting to get greater guidance to help their clients who took PPP loans.
“The bill doesn’t include everything, but it’s a good start,” says Brian Streig, CPA and Tax Director of Calhoun, Thomson + Matza, LLP in Austin, Texas. “I do think this bill is good for small business owners who have taken out Paycheck Protection Program loans.”
The PPP loan program has weathered intense criticism since the passage of the CARES Act. From early confusion regarding the loan application process to the slow pace in which the Small Business Administration (SBA) has released guidance, it has not been an easy path for borrowers. But this new bill provides hope that greater flexibility to the PPP loan forgiveness process will help many small business owners survive the Covid-19 crisis.
