WASHINGTON – Today, President Trump signed H.R. 7010, the Paycheck Protection Program Flexibility Act. The bill passed the House on May 28th with an overwhelmingly bipartisan vote of 417-1 and passed the Senate on June 3rd by voice vote.
“Small businesses are the lifeblood of Connecticut’s economy,” said Rep. Hayes. “Greater flexibility for the SBA’s PPP will offer much needed relief to Main Street during this trying time. Not only did I vote for this bill, but I was also a cosponsor. H.R. 7010 took many of the small business provisions in the HEROES Act and addressed them as a stand alone bill. The Senate must now consider the full HEROES Act and get the rest of the country the additional relief they desperately need.”
The Paycheck Protection Program Flexibility Act would help small businesses by:
- Extending forgiveness for expenses and the rehiring deadline beyond the 8 week covered period to 24 weeks;
- Increasing the current limitation on nonpayroll expenses (such as rent, utility and mortgage interest) for loan forgiveness from 25 to 40 percent;
- Extending the program from June 30 to December 31, 2020;
- Extending loan terms from two to five years; and
- Ensuring full access to payroll tax deferment for businesses that take PPP loans.
The Paycheck Protection Program was created as part of the CARES Act to help businesses keep employees on payroll during the COVID-19 pandemic.