Rep. Tlaib Votes to Pass Key Fixes to Paycheck Protection Program, Takes Action to Help Michigan Workers and Small Businesses
WASHINGTON – Today, Rep. Tlaib voted to pass a critical, bipartisan bill to deliver further relief for small businesses in the 13th Congressional District and across Michigan. Led by Congressman Dean Phillips of Minnesota, H.R. 7010, the Paycheck Protection Program Flexibility Act solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners in Michigan and across the country who are struggling the most as a result of the coronavirus.
“Small businesses are the backbone of our local economy. Many of my neighbors own small businesses that have been hit hard by this pandemic. They are in desperate need of assistance and I am going to continue to push for that help,” said Rep. Tlaib. “The ongoing crisis requires us to provide urgently-needed fixes to the PPP program so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses, have the flexibility to obtain the assistance they urgently need.”
“Small business have expressed to my office that the current Paycheck Protection Program does not work for them,” Rep. Tlaib added. “For many small businesses, including for example small independent restaurants, their rent or mortgage interest tend to be significantly more than 25 percent of their total monthly expenses. Hence, to address their concerns, this bill raises that percentage from 25 percent to 40 percent.”
The bipartisan PPP Flexibility Act will increase flexibility and access to PPP loans including by:
- Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- Increasing the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
- Extending the program from June 30 to December 31;
- Extending loan terms from two to five years; and
- Ensuring full access to payroll tax deferment for businesses that take PPP loans.
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