UPDATED July 1, 2020 – Congress approves extending Paycheck Protection Program (PPP) through Aug. 8; President expected to sign it.

On July 1, the U.S. Congress passed legislation to extend the popular program through Aug. 3 and President Trump is expected to sign it, the National Association of REALTORS® (NAR) reports. The program offers forgivable loans for small businesses to pay expenses and keep workers on the payroll. Read more from NAR.

Today President Trump signed into law the “Paycheck Protection Program (PPP) Flexibility Act,” a bipartisan measure passed nearly unanimously by Congress this week, that makes some important and necessary amendments to PPP loan process. From a borrower’s perspective, some of the important changes and benefits include:

  • Extending the time that PPP loans will be available to Dec. 31, 2020. The application deadline remains June 30, 2020.
  • An increase in the amount of time borrowers are required to use their loans from eight to 24 weeks (borrowers who use it in eight will not be penalized).
  • A decrease of the mandatory amount of the loan that must be used on payroll from 75 percent to 60 percent.
  • An extension of the forbearance period for a PPP loan from six months to a year.
  • An extension of the rehire exemption for businesses from June 30 to Dec. 31.
  • An extension of the maturity date for new PPP loans from two years to five years.
  • In some instances, payments on principal, interest and fees may now be deferred until the forgiveness amount is remitted to the lender.

In response to the new amendments, additional guidelines are expected soon from the Small Business Administration (SBA) and the U.S. Treasury Department. Illinois REALTORS® will continue to monitor for any further changes and will provide important updates as new rules and guidelines are released. Get additional information.