Possible Changes for PPP
LOUISIANA REALTORS • June 1, 2020
UPDATE:
On June 3, the Senate passed the “PPP Flexibility Act” by unanimous consent. This bill, which the House passed last week by a vote of 417-1, amends the CARES Act to give more flexibility to PPP borrowers in how they can use their loan proceeds. Specifically, the bill makes the following positive changes to the program:
- Extends the PPP program through the end of this year. The application deadline remains June 30, 2020.
- Increases the amount of time borrowers have to use their loans from 8 to 24-weeks (borrowers who use it in 8 will not be penalized).
- Decreases the mandatory payroll amount of the loan from 75% to 60%.
- Extends the forbearance period for a PPP loan from six-months to a year.
- Extends the re-hire exemption for businesses from June 30 to December 31.
The bill has been sent to the President, and he is expected to quickly sign it into law. The SBA and Treasury will need to issue new guidance and new forms to reflect these changes to the program, which we anticipate will be top priorities for them. NAR is updating its resources to reflect these changes and will keep you apprised as we learn more from the Treasury and SBA going forward.
For more information: https://www.nar.realtor/washington-report/ppp-flexibility-act-passes-congress
The United States House of Representatives recently passed the "Paycheck Protection Program Flexibility Act," which seeks to make several changes to the CARES Act to increase allow small businesses more flexibility with PPP loans. The Senate is expected to consider similar legislation next week, although there may be some differences in its legislation. The changes the House proposes include:
- Extending the program sunset to December 31, 2020;
- Extending the length of time businesses can use the loans from 8 to 24 weeks, or until the end of the year (whichever is earlier) (note: businesses that have used it in 8 will not be penalized);
- Removing the requirement that 75% of the loan go toward payroll costs;
- Making PPP recipient businesses eligible for the delayed payment of employer payroll taxes in the CARES Act; and
- Creating an exception to the rehire requirement for employees that were let go due to COVID-19 if a business can show that they are unable to return to normal operations due to compliance with federal government rules or guidelines based on maintaining sanitation, social distancing, or worker/customer safety requirements related to COVID-19.
The National Association of REALTORS pledges to continue to advocate for improvements to this program so it can be more responsive to the needs of small businesses and independent contractors during this crisis, and to ensure that the maximum number of them are able to reopen when it concludes.
Louisiana’s 2026 Regular Session opened this week with several developments that matter directly to REALTORS ®, property managers and housing providers, alongside some broader political shifts worth watching. HB 292: Security Deposit Return Timelines Rep. Delisha Boyd’s HB 292, which addresses procedures for returning residential security deposits, was deferred to next week. This provides additional time for stakeholders to engage with members on practical impacts for lease administration, move out inspections and documentation standards. We’ll continue working to ensure any changes to deposit law are clear, workable and do not expose housing providers to unreasonable liability. Land Use and Development: St. James Parish Decision The Louisiana Supreme Court’s recent St. James Parish decision significantly tightens the standards for overturning local land use decisions, reinforcing that zoning and permitting authority rests with parish and municipal governments as long as their decisions are not arbitrary or capricious. For real estate and development, that means more predictability if projects are aligned with adopted plans and ordinances, but also higher stakes in local elections, planning processes and parish-level negotiations. Governor’s State of the State In his State of the State address, Governor Jeff Landry reiterated his push to phase out the state income tax, expand the LA GATOR and MJ Foster scholarship and workforce programs, and replace vehicle inspection stickers with a QR code system. These programs frame a debate around long-term competitiveness, workforce readiness and household cost of living which are all key drivers of housing demand and migration patterns. Business & Market Trends The business community is focusing the session on insurance, workforce and energy. Commercial and property insurance costs remain a top concern for employers and property owners, and we are monitoring civil justice and insurance reform proposals that could affect market stability and availability. At the same time, Louisiana is seeing more than $100 billion in announced industrial and data center projects, which could reshape local markets, labor conditions and housing needs in multiple regions of the state. Please view the weekly bill tracking report at the link below provided by our lobbying team over at Harris, DeVille and Associates.
Learn how Louisiana real estate regulations, disclosure laws, and licensing standards help protect homebuyers and create safer, more transparent transactions.
Nominations are open now through April 24, 2026, for the Louisiana REALTORS® 2025 REALTOR® of the Year & the 2025 Lawrence R. DeMarcay, Jr. Distinguished Service Award. Both awards are aimed to showcase an individual who has volunteered their time in service to the real estate industry. Recipients of the awards will be recognized during the Spring Legislative Conference. (Registration coming soon!) Please see the below links with the selection criteria and consider submitting a nomination today. Contact Donna Teekel at (225) 224-0704 or dteekel@larealtors.org with any questions.
