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The restaurant industry won a major legislative victory on Wednesday when the United States Senate voted to triple the time allotted for small businesses under the Paycheck Protection Program (P3) to spend their emergency loans while at the same time. forgiving.

In addition to extending the spending deadline to 24 weeks, the bill allows restaurants and other borrowers to use up to 40% of the money loaned on rent and other unrelated operating expenses. payroll. The law currently requires that 75% of the money be spent on wages and salaries if the borrower wishes the loan to be canceled.

The bill has already been approved by the House of Representatives. President Trump is expected to sign the measure today.

The quick actions – a snap by Washington, DC standards – come as many restaurants are close to reaching the 8-week deadline to spend the funds they were given at the start of the P3. Operators had complained that it made no sense for them to spend the loaned money while their dining rooms were still closed by order of the state. They argued that the funds would not be needed weeks later when the catering service was allowed to resume.

Likewise, restaurateurs emphasized that they did not need to spend 75% amounts loaned out of labor when places that remained open needed only a small staff to handle take-out and delivery.

The non-compliance would have forced borrowers to repay their loans at 1% interest, starting in the fall. Many operators said they did not expect to be fully operational again at that time and that reimbursement would be another financial burden threatening their ability to remain in business.

“Today’s action in the Senate is a victory for restaurants and small businesses across the country,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, in a statement. “Exactly 68 days ago the Paycheque Protection Program was created. It’s helped countless businesses, but the restaurant industry has a unique business model and a particularly uncertain recovery path – and these PPP improvements will help restaurants use this vital tool effectively.

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