POSTED ON MONDAY, June 8, 2020
Last week, the Senate approved new legislation to relax rules applying to businesses receiving paycheck protection program (PPP) funds under the CARES Act. The new rules will give small businesses more time and flexibility to repay funds.
The legislation passed the Senate by unanimous consent. The bill now goes to President Donald J. Trump who is expected to sign it.
“As approved by the House and Senate, H.R. 7010, Paycheck Protection Program Flexibility Act provides for the following changes to the PPP program:
- Extension of the eight-week requirement for funds to be spent to 24 weeks. (The eight-week period began expiring on May 29 for the first loan recipients on April 3.)
- A decrease of the requirement that 75 percent of funds be spent on payroll down to 60 percent. If 60 percent is not spent on payroll none of the loan will be forgiven. This is a change from the original requirements where some of the loan would still be forgiven if the 75 percent standard was not met.
- The requirement for restoring the workforce to pre-pandemic levels has been extended through December 31, 2020 to obtain full loan forgiveness.
- Creates two new exceptions to the pre-pandemic workforce levels requirement for loan forgiveness. 1.) If the business cannot find qualified workers, or 2.) If businesses have not returned to pre-pandemic levels due to COVID-19.
- Loan repayment has been extended from two to five years.”
Source: NAHC Report
About Corridor
Corridor is the nation’s preferred partner and trusted business advisor to home health and hospice providers, providing quality services and impactful results for 30 years. Focusing on key operational, regulatory and financial challenges, Corridor delivering industry-unique solutions and deep expertise in coding, clinical documentation review, compliance, billing and collections , consulting and provider staff education . At Corridor, we make the business of caring for people Better! For the most important industry updates and news that impacts home health and hospice, please make sure to sign up for our weekly newsletter to receive the latest up-to-date industry information direct to your inbox!
For additional information, please contact Corridor at 1-866-263-3795.
