The Senate passed legislation Wednesday night to create changes to the Paycheck Protection Program (PPP), which provides help for small businesses struggling during the coronavirus pandemic.
The PPP was a part of the CARES Act, which provided more than $2 trillion in relief for workers, hospitals and those in need across the country. The bill passed by unanimous consent. The Paycheck Protection Program Flexibility Act gives small businesses flexibility to use loans for coronavirus.
Instead of the 75% of the loan small business would have to use on payroll, they are now only have to use 60% on payroll under the new legislation, and the bill alos allows companies to defer payroll taxes if they also get loan forgiveness, accoridng to NBC News.
The $660 billion PPP gives forgivable loans to businesses employing up to 500 workers for up to $10 million. The average loan is $113,705, according to the Small Business Administration, USA TODAY reported.
The passed the House previously passed the legislation on a 417-1 vote May 28. (RELATED: McConnell Pledges To Add Funding To Coronavirus Paycheck Fund On Thursday)
Democrats tried to pass the legislation earlier Wednesday; however, Republican Wisconsin Sen. Ron Johnson objected. (RELATED: Sen. Rubio Urges Trump Administration To Protect Worker Interests With Paycheck Protection Program)
“I’m glad our Republican friends have relented and passed the bill here as we are about to close session for this week. It passed the House. We Democrats have been pushing to get it done for the last three days,” Senate Minority Leader Charles Schumer said after it passed.
Senate Majority Leader Mitch McConnell said earlier Wednesday that “Today we’re passing another piece of legislation that makes a few targeted changes to the program…,” he said on the Senate floor. “I’m proud the Senate is sending it on to the president’s desk to become law.”
The legislation will now head to President Donald Trump’s desk for a signature.