This week, the U.S. Senate passed H.R. 7010, the Paycheck Protection Program Flexibility Act, sponsored by Reps. Dean Phillips (D-Minnesota) and Chip Roy (R-Texas). The same legislation passed the U.S. House of Representatives last week by an overwhelmingly bipartisan 417-1 vote. The bill now heads to the president’s desk where he is likely to sign it into law.
The majority of Big “I” members and many of their clients are small businesses and have been deeply affected by government closures and other restrictions, labor force limitations, supply chain interruptions and the curtailment of ordinary activities. Since its creation in the bipartisan CARES Act, the Paycheck Protection Program (PPP) has provided an essential lifeline for many of these small businesses.
The bipartisan Paycheck Protection Program Flexibility Act was strongly supported by the Big “I” and will create additional PPP flexibility for Big “I” members and their clients. Specifically, the legislation will extend the expense forgiveness period from eight weeks to 24 weeks, reduce the 75% payroll ratio requirement to 60%, eliminate the two-year loan repayment restrictions for future borrowers, allow payroll tax deferment for PPP recipients and extend the June 30 rehiring deadline.
As Congress and the Trump administration continue to consider COVID-19 relief measures, the Big “I” will make the most up-to-date government affairs information available on the coronavirus resource page and in the weekly News & Views e-newsletter.
Wyatt Stewart is Big “I” senior director of federal government affairs.