Newsroom

The Senate Wednesday passed by unanimous consent legislation to make changes to the Small Business Administration's (SBA) paycheck protection program (PPP). The House passed the bill with overwhelming bipartisan support last week; it now heads to the president's desk.

"NAFCU applauds Congress' efforts to ensure the PPP works for small businesses, and this bill provides business owners with flexibility to use the program's funds over an extended period of time," said NAFCU President and CEO Dan Berger. "As the coronavirus crisis evolves, small businesses are adjusting their plans daily. These reforms will allow each to make the strategic decisions that are best for their business and employees amid uncertainty and economic hardship. We thank lawmakers for sending this important bill to President Trump’s desk for signature, and NAFCU looks forward to continuing to work with Congress on future coronavirus relief reforms."

Under the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010), small businesses will have up to 24 weeks to use the loans and the deadline for rehiring workers would be extended from June 30 to the end of this year. It would also change the requirement related to the portion of PPP loan forgivable amount that must be used toward payroll from 75 percent to 60 percent.

NAFCU had urged lawmakers to clear legislation to make changes to the PPP to provide relief to small businesses.

NAFCU will continue to monitor potential changes to the PPP and remain in contact with the SBA, Treasury Department, and Congress to ensure credit unions can lend effectively through the program. 

Access NAFCU's PPP FAQs here; more information is also available on the SBA's and Treasury's websites.