President Trump and Treasury Secretary Steven Mnuchin sent positive signals to businesses this week about changes to the Paycheck Protection Program.
Currently, the government will forgive PPP loans after eight weeks if businesses use the funds to maintain their workforce. But recipients of the funds have been lobbying Congress and the administration to give them more time to spend the money, along with more flexibility about how to use it. For now, 75 percent of the funds must be spent on payroll.
There is growing support among lawmakers for extending the timeline to 24 weeks.
Making the change “should be easy,” Trump said Monday, adding, “That’s like one of the easiest requests I’ve ever heard.”
Mnuchin said officials are working on a “technical fix” that has bipartisan support in Congress, though he wasn’t sure if 24 weeks was the best window.