Allred Votes for Bipartisan Bill to Expand Small Business Assistance
Washington, D.C. – Congressman Colin Allred (TX-32) today voted for a bipartisan bill that will expand benefits and eligibility within the Payroll Protection Program (PPP). The Payroll Protection Program Flexibility Act passed with broad bipartisan support. Allred is a cosponsor of the bill.
“Small businesses and their workers are bearing the economic burden of this crisis, and in order to deliver lasting, successful relief, we must work together,” said Allred. “This bill makes significant steps to improve the Payroll Protection Program and help the small businesses who need it most. I’ve heard from too many small businesses who are struggling to get help, and I will keep fighting to improve and extend these programs so that every small business who needs help, can get it.”
The PPP Flexibility Act makes the program more accessible and usable for the vulnerable small businesses that need it the most. The bill improves the program by:
- Allowing loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline.
- Increasing the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent. Currently, under regulations issued by the Administration, the PPP loans require that no more than 25 percent of loan proceeds can be spent on non-payroll expenses such as rent, mortgage interest, and utilities. This limitation has prevented many small businesses, such as independent restaurants, from applying to the program because their rent is significantly more than 25 percent of their monthly expenses.
- Extending the program from June 30 to December 31. By ensuring the PPP program will operate for 24 weeks, rather than only eight, this bill will ensure that many more truly small businesses will be able to take advantage of the program.
- Extending loan terms from two years to five years. According to the American Hotel and Lodging Association, full recovery for that industry following both the September 11, 2001 terrorist attacks and the 2008 recession took more than two years. It will take many businesses more than two years to earn sufficient revenues to pay back the loan.
- Ensuring full access to payroll tax deferment for businesses that take PPP loans. The purpose of PPP and the payroll tax deferment was to provide businesses with liquidity to weather the crisis. Receiving both should not be considered double-dipping. Businesses need access to both sources of cash flow to survive.