PPP Loans Now Only Require 60% of Funds for Payroll Use
Post date
June 12, 2020
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By Robert Freeman, Construction Dive
Borrowers only have to use 60% of their loan funds for payroll costs under changes the federal government made to the Paycheck Protection Program (PPP) that was signed into law Friday, June 5. Previously, the program required borrowers to use 75% of the funds on payroll, a requirement contractors and other businesses said was too restrictive.
In a key change, the period over which borrowers must spend the loan proceeds is extended from eight weeks to 24. The 24-week period is expected to be more useful because borrowers can use the funds to pay employees and operating costs as businesses begin reopening.