WASHINGTON, DC -- The U.S. House of Representatives today passed the Paycheck Protection Program Flexibility Act, a bipartisan bill to provide needed flexibility for small business owners amid the COVID-19 health and economic crisis. Representative Tom Malinowski (D, NJ-7) co-sponsored the bill.
The Paycheck Protection Program (PPP) has helped over 130,000 small businesses in New Jersey and their employees to survive the current crisis. In the months since it was created, however, it has become clear that it isn’t working for everyone, and that adjustments are needed to enable small businesses to cover necessary expenses and to give them time to bring employees back. The PPP Flexibility Act improves the program by:
- allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- increasing the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
- extending the program from June 30 to December 31;
- extending loan terms from two to five years; and
- ensuring full access to payroll tax deferment for businesses that take PPP loans.
“The PPP program has been a lifeline for small businesses in my district,” said Congressman Malinowski. “By increasing flexibility for borrowers and giving them more time to get back to normal, we will help our local businesses weather the storm.”
The bill now moves on to the Senate.
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