WASHINGTON, D.C. — President Donal Trump has signed a bill that will reform the Paycheck Protection Program (PPP) to give small businesses added flexibility regarding how they can spend money awarded through the program.
The U.S. House of Representatives and U.S. Senate approved a series of changes the week of June 1 to the PPP, a program that has pumped hundreds of billions of dollars into the economy through the use of forgivable loans to small businesses. Mr. Trump signed the reform bill in to law June 5.
The Specialty Equipment Market Association (SEMA) and the Tire Industry Association ((TIA) are two of dozens of trade groups that have called for PPP reform as the impact of COVID-19 continues across the nation.
"So the PPP program was based on eight weeks to go ahead and pay your employees, be able to get the government to absorb those costs, including rent and other costs," Stuart Gosswein, senior director of federal government affairs at SEMA, said.
"It's obvious that stay-at-home and reopening is taking longer. We need to make adjustments to the PPP program. We have been urging Congress to quickly make those adjustments," Mr. Gosswein said just before the Senate approved changes.
PPP has provided more than $500 billion of federal dollars to help cover payroll and other costs.
The money has come in two separate waves, but original rules are sometimes at odds with circumstances surrounding SEMA members, Mr. Gosswein said. That put small businesses in danger of having to pay back the loans at a time when they are struggling to survive.