House Approves PPP Fix BillMay 27, 2020
On Thursday, the House voted 417-1 in favor of NSBA-supported H.R. 7010, the Paycheck Protection Flexibility Act introduced by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas). This legislation would make urgently needed changes to the Paycheck Protection Program (PPP), a vital initiative for small businesses struggling in the wake of the coronavirus epidemic.
The CARES Act and the Paycheck Protection Program and Health Care Enhancement Act authorized $659 billion in total lending for the PPP, and provided a combined $20 billion for the EIDL emergency advance payment program, among other small business allocations. However, despite ample funding, the PPP was passed with some serious flaws and more needs to be done to help employers stay afloat during these economically turbulent times.
Some of the key provisions of H.R. 7010 will: (1) change the program sunset date from June 30, 2020 to December 31, 2020; (2) extend the rehiring deadline for loan forgiveness from 8 to 24 weeks; (3) lengthen the loan maturity date from 2 to 5 years; (4) extend the rehiring deadline to align with the expiration of enhanced Unemployment Insurance; (5) lower the forgiveness payroll expenses threshold from 75 percent to 60 percent; and (6) provide a “Borrower’s Choice” provision, which allows those who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
Moving ahead on the proposal with Republican support this week enables Congress to get around the current impasse on whether to approve a new round of coronavirus relief. This bill is separate from the $3 trillion Democratic catch-all package combining state aid with new stimulus checks that the House passed last week over the objections of some Republicans.
Sens. Tim Kaine (D-Va.), Thom Tillis (R-N.C.), Debbie Stabenow (D-Mich.) and Cory Gardner (R-Colo.) are original co-sponsors of the Senate version of the bill.
NSBA sent a letter to the Hill in support of H.R. 7010. In the letter, NSBA highlights that this legislation would provide enhancements to the PPP that serves as the lifeblood to thousands of small businesses, and we hope it is swiftly considered and passed by the Senate. It is not just the survival of the business that is impacted but the livelihoods of their employees, their families and the communities they serve all now face serious problems related to the COVID-19 pandemic unless Congress acts–and time is running out to make these fixes.
Click here to view NSBA’s letter in support of the bill.
Click here to view NSBA’s statement of support on passage of the bill.