Business Finance | 3 Min read
Bi-Partisanship Is Not Dead Yet
In a stunning display of bi-partisanship, the Senate approved the House's Bill yesterday for a PPP Loan Program revision, called the Paycheck Protection Flexibility Act, which provides more flexibility to business and should ease businesses' burdens and concerns about utilizing the program. The Bill will now go to President Donald Trump, who is expected to sign it.
The revisions represent common sense fixes to a well intentioned business relief program that has been over burdened by confusion and recently underutilized by the very businesses it was intended to help through the crisis.
Summary Of PPP Loan Program Revisions
The Journal of Accountancy provides and excellent summary of the revisions compiled by AICPA:
PPP Loan Program Background
The PPP Loan Program launched in early April with $349 billion in funding. I previously commented on the the initial demand exhausting available funds in less than two weeks as well Congress provided an additional $310 billion in funding in an April 21 vote. I also wrote about waning demand from business due to concerns about obtaining of loan forgiveness under the program’s rules advising our clients to wait and see how Congress addressed the uncertainty.
When dealing with the government, especially in this current atmosphere of dysfunction, a wait and see approach sometimes pays off. The current revisions from a common sense bi-partisan bill might actually fulfill the original intent of hte PPP Loan Program and help many struggling businesses survive the current crisis and keep paying their employees. A little hope is something we could all use right now.