CONGRESSWOMAN ANGIE CRAIG MOVES FLEXIBILITY FOR SMALL BUSINESS PAYCHECK PROTECTION PROGRAM LOANS FORWARD
U.S. Rep. Angie Craig, a member of the House Small Business Committee, today helped to pass the Paycheck Protection Program Flexibility Act (H.R. 7010) to immediately fix the challenges businesses have in the Paycheck Protection Program.
The Paycheck Protection Program Flexibility Act would:
- Allow loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extend the rehiring deadline.
- Increase the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent.
- Extend the program from June 30 to December 31.
- Ensure full access to payroll tax deferment for businesses that take PPP loans.
“I’ve talked with hundreds of small business owners and their stories are all the same, this program needs to be adjusted to save as many small businesses as possible. Today, I’m proud to cosponsor and pass legislation that extends the forgivable loan period, extends the loan payback period and adjusts the requirement that 75% of the loan must be used on payroll to be forgiven,” said Rep. Angie Craig. “We came together across the aisle to enact the Paycheck Protection Program and the Economic Injury Disaster Loan advances, which were set up with Congressional intent to help small businesses get through the enormous burdens resulting from COVID-19. I’m glad to see this bipartisan bill pass the House. I ask the Senate to swiftly pass this bill ensuring our intent of helping businesses is successful by adapting these programs to fit their needs. The time to act is right now.”
Rep. Craig has been pushing for small business relief to help with the devastating impacts of COVID-19 since our communities were first impacted. In March, she introduced the Small Business Relief Guaranteed Loan Program Act of 2020 which introduced the idea of interest-free, forgivable loans in response to COVID-19. The CARES Act included this concept to create the Paycheck Protection Program. She has taken several steps to improve these loans, including:
- Making sure the program was funded by requesting and securing funds in the Paycheck Protection Program and Health Care Enhancement Act to replenish the SBA loan programs in the CARES Act.
- Urging for flexibility by pushing leadership while they were crafting the Heroes Act to include PPP flexibility by way of extending the June 30th deadline to use loan funds, elimination of the 75/25 rule and extension of the loan repayment, all of which were included in the Heroes Act and again in H.R. 7010.
- Calling for more transparency on PPP loans like who is getting approved and who isn’t, where are the loans going and how many of the recipients are economically disadvantaged, women or veteran-owned businesses. Craig was proud to cosponsor and strongly support the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home Act or the TRUTH ACT when it was voted on in the House today. Rep. Craig continues to push on making sure the Congressional small business relief programs are reaching mom and pop shops.
- Recognizing the unique needs of each business, including the need for some businesses to purchase supplies and goods previously tax exempted that began to be taxed to recipients of the PPP loan, Rep. Craig cosponsored the Protecting the Paycheck Protection Program Act of 2020, which would correct this and was included in the Heroes Act.
- Continuously pushing for answers from The Department of Treasury and the Small Business Administration on PPP to hold the agencies accountable for the program.
As a member of the House Small Business Committee and through her many conversations with small businesses in the Second District, Rep. Craig is helping to push forward a bill to match small businesses who can pivot and fill the need of replenishing personal protective equipment supplies.
“I will not stand by as we see more and more restaurants and small businesses close their doors permanently. I ask all of my colleagues on both sides of the aisle and in both chambers to set partisan politics aside and work together on real solutions for every Main Street across the country,” said Craig.