U.S. House of Representatives Passes Paycheck Protection Program Flexibility Act
Gives U.S. Small Businesses Greater Flexibility
Washington, May 28, 2020
Tags: Economy / Small Business
Washington, D.C. – Today, Congressman Ross Spano (R-FL), the sole Florida Representative on the House Small Business Committee, supported the passage of H.R. 7010, the Paycheck Protection Program Flexibility Act. The bill, which will now make its way to the U.S. Senate, provides small businesses who participated in the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) varying degrees of flexibility when it comes to the terms of their loans.
“We have seen the lifeline ‘PPP’ has been to thousands of businesses across Florida’s 15th District, this is an opportunity to build on such. The added flexibility this bill provides will immensely help our Main Street businesses get back up and running as our American economy returns,” said Rep. Spano. “This bill is good for both small businesses and their workers— I am proud to have voted for this common-sense bill.”
Created under the CARES Act, the Paycheck Protection Program has provided much-needed relief to millions of small businesses and its estimated to have saved over 50 million American jobs. As the program was unveiled, it became evident certain rules would have to be adapted to accommodate different jurisdictions, opening phases and progress.
H.R. 7010 allows for the following changes to be made to all approved and issued PPP loans:
· Extends loan forgiveness period to 24 weeks
· Replaces the 75/25 rule with a 60/40 rule for payroll expenses/business expenses
· All new PPP loans will receive a 5-yr maturity. Existing loans remain at 2-year maturity
· Allows businesses that receive forgiveness to also receive payroll tax deferment
· Ensures small businesses won’t be penalized by high unemployment benefits
· Creates a safe harbor for businesses that are required to open at maximum 50% capacity
Since the beginning of the pandemic, Rep. Spano has been working diligently with small business owners and local financial institutions to ensure residents and businesses are aware of federal aid available through the SBA & U.S. Department of the Treasury. Spano also made available an ‘In-Depth Small Business Guide’ and has been visiting FL-15 small businesses to directly hear from owners and workers how he can further assist them. More business visits are scheduled in the weeks ahead.
For more information, visit Spano.House.Gov.