Congress Extends Paycheck Protection Program

Congress Extends Paycheck Protection Program

This bill, which passed in the House on May 28, will now head to President Trump for his signature.

From Auto Care Association

The Senate passed the “Paycheck Protection Program Flexibility (PPP) Act of 2020.” This bill, which passed in the House on May 28, will now head to President Trump for his signature.

This latest law will amend the terms of the PPP in favor of loan recipients by: 

  • Establishing a minimum maturity of five years for a loan with a remaining balance after forgiveness. 
  • Extending the covered period during which loan funds may be used for certain expenses. The original covered period was 8 weeks from the date of loan origination and ended on June 30. It is now extended to 24 weeks after the loan origination or Dec. 31, 2020. 
  • Superseding the Small Business Administration’s policy that 75% of loan proceeds must be used for payroll expenses. The new percentage is 60%.
  • Extending the period of time in which a business may re-hire furloughed employees and restore wages in order to maximize loan forgiveness. And, accommodations are made for businesses that are (1) unable to rehire former employees and are unable to hire similarly qualified employees, or (2) are unable to return to the same level of business activity due to compliance with federal requirements or guidance related to COVID-19.
  • Allowing recipients to defer loan payments until they receive compensation for forgiven amounts. 
  • The Small Business Administration will issue implementing regulations and amend the application for PPP loan forgiveness in accordance with the Act. 

For further questions, contact Gabrielle Hopkins, vice president, federal affairs at [email protected]

You May Also Like

Auto Care Association Launches REPAIR Act Video

The goal is to emphasize the need for federal REPAIR Act legislation, according to the Auto Care Association.

The Auto Care Association launched a new Right to Repair video campaign, featuring independent repair shop owners from across the United States share their stories and shed light on the increased challenges independent repair shops are facing with accessing repair data to service their customers’ vehicles. 

The video campaign emphasizes the need for the Right to Equitable and Professional Auto Industry Repair Act (“REPAIR” Act), which ensures vehicle owners and repair shops have access to tools and data needed to keep cars and trucks on the road safer, longer.

ASE Education Foundation, Goodguys Continue Partnership

Goodguys is one of many industry relationships the foundation has developed to help solve the technician shortage.

Valvoline Celebrates Female Service Center Employees

As women make up more than half of all drivers in the United States, Valvoline is taking steps to increase their vehicle care confidence.

UniClutch Launches Clutch System in the United States

From Australian manufacturer Clutch Industries, UniClutch is a clutch system that delivers uncompromised performance.

Automotive Hall of Fame Announces Class of 2024 Inductees

Six honorees whose efforts helped shape the automotive and mobility marketplace will be recognized.

Other Posts

Castrol Turns 125, Debuts New Market Strategy

As part of the new strategy, Castrol will explore opportunities in battery thermal management, digital and service solutions and data center immersion cooling.

Valvoline Global to Debut Ad During Super Bowl Pre-Game

The company will showcase its Restore & Protect motor oil in a 30-second ad before Super Bowl LVIII.

Litens Adds Distribution Footprint via Acquisition

With the acquisition, Litens is set to improve its overall customer experience through enhanced communication capabilities and increased flexibility that enables Litens to further meet diverse customer demands with ease.

Advance Auto Parts, Baker Mayfield Partner for Super Bowl

If there is a false start penalty during Sunday’s Big Game in Las Vegas, fans can win free DieHard batteries for life.