Stevens Responds to Concerns from Michigan Small Business Owners, Votes to Improve Paycheck Protection Program
WASHINGTON — Today, Congresswoman Haley Stevens (MI-11) voted to pass the Paycheck Protection Program Flexibility Act, a bipartisan bill to make a key small business lending program more accessible and usable to the small businesses that need it most. During Congresswoman Stevens’ regular teleconference meetings with small business owners in Michigan’s 11th District, business owners have asked for more flexibility to use PPP funds in the ways they need. Congresswoman Stevens has raised these issues with the Trump Administration and the House Committee on Small Business, and voted today to pass bipartisan legislation to address the concerns she has been hearing from small businesses in Michigan.
“Today, I voted to make long-awaited improvements to the Paycheck Protection Program so that PPP funding will be more helpful to the businesses that need it most,” said Congresswoman Stevens. “As I have met with small business owners in Michigan’s 11th District over the last few weeks, I have consistently heard that businesses need more flexibility on how and when to use funding from the Paycheck Protection Program. This bipartisan legislation will make a huge difference for the incredible small businesses in my district that are at risk of closing permanently,
and their hard working employees. While we must consider additional tools to help workers and businesses like the Paycheck Guarantee Act, the PPP Flexibility Act is a key part of the bipartisan actions Congress has taken to protect small businesses, save jobs, and stand by the middle class as we weather this economic downturn and public health crisis.”
Specifically, the Paycheck Protection Program Flexibility Act will create more flexibility for small businesses by:
- Extending the expense forgiveness period beyond the originally stipulated eight weeks to 24 weeks.
- Adjusting the 75 percent-to-payroll requirement, and therefore eliminating restrictions limiting non-payroll expenses to 25% of loan proceeds. This gives businesses more flexibility to cover mortgage, rent, and utilities.
- Eliminating 2-year loan repayment restrictions.
- Prohibiting mutual exclusivity of PPP loans and payroll tax deferments, which allows businesses to take advantage of both payroll tax deferments and PPP loans.
- Dropping the June 30 rehire deadline, so that businesses that make a good faith attempt to rehire all of their employees, but are unable to, should still be able to receive loan forgiveness.
This bipartisan bill is supported by numerous organizations, including the National Small Business Association, Small Business Majority, Small Business Roundtable, U.S. Chamber of Commerce, National Restaurant Association, Independent Restaurant Association, NFIB, International Franchise Association (IFA), U.S. Hispanic Chamber of Commerce, National Association of Women Business Owners, US Travel Association, American Hotel and Lodging Association, Associated General Contractors of America, National Independent Automobile Dealers Association, National Association of Wholesaler-Distributors, National Newspaper Association, National Association of Manufacturers, and others.