On Wednesday we wrote a blog post about the PPP Forgiveness process.  And true to form, lawmakers are already throwing a wrench in how and when forgiveness may be awarded for small businesses.  Yesterday, the House of Representatives voted to ease restrictions on how the PPP could be spent.  Now, this has yet to pass the Senate, and time will tell if it will as the Senate will not be back in session until next week.  Then, if it does pass the Senate, it will have to be signed into law by President Trump.  The Senate also introduced a similar bill, but have yet to pass it.

So let’s look at the differences in the two bills.

House Bill Summary on PPP forgiveness (passed yesterday):

  • Reduce the share of aid money small business are required to spend on payroll from 75% to 60%
  • Extend the window businesses have to use the funds from two months to six months
  • Push back a June 30 deadline to rehire workers
  • Extend the time recipients have to repay the loan
  • Let companies that get loan forgiveness defer payroll taxes

Senate Proposed Bill Summary on PPP forgiveness:

  • The bill would extend the time frame in which businesses needed to spend the money from 8 – 16 weeks
  • Push back the deadline to apply to the end of the year (from June 30th)
  • Ensure lenders weren’t liable for certifications provided by borrowers
  • “Allow borrowers to use loan funds to purchase personal protective equipment for employees and to pay for adaptive investments needed to reopen safely,”

Obviously there are some differences here, and some Senators are already giving push back to the House Bill that just passed, but it is likely that restrictions will ease to some degree.

Benefit to Independent Contractors and Self-Employed individuals:

While the time to add back employees is not a factor for the Self-Employed, allowing borrowers to use loan funds on other sources and giving them extended timelines would definitely be helpful.  Due to the fact that we have some time, it may be helpful to not apply for forgiveness until we have a bit more clarity on how the PPP restrictions may be eased.


Disclaimer:  Please note that we are not CPA’s, so anything you see on our blog is just for your information and should not be considered advice as we do not know your specific needs or issues.  Please consult your CPA or Advisor.


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  1. […] Last week we wrote about how the House of Representatives passed a law to ease the terms of Forgiveness for the Paycheck Protection Program.  Yesterday afternoon the Senate unanimously passed the same bill by voice vote.  The bill will now head to the President’s desk to be signed into law. […]

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