On May 28, the House voted 417-1 to pass legislation that will make urgent changes to the Paycheck Protection Program (PPP), created to help small businesses struggling during the ongoing COVID-19 pandemic.
The legislation would give small businesses more time to use P3 loans by extending the eight-week period during which they must use the money to qualify for a loan forgiveness to 24 weeks. The bill also gives PPP recipients more flexibility by amending the 75/25 rule, which requires fund recipients to use 75% of the money for salary costs in order to be eligible for loan cancellation. . The new ratio would be at least 60 percent on payroll and no more than 40 percent on other expenses.
“I didn’t want to see another local institution shut down because Congress is more about politics than helping Americans who need it,” Roy said. said in a press release. Fortunately, our bipartisan bill puts Americans first and will ensure that our favorite small businesses are on the other side. I thank my colleagues for their overwhelming support today and look forward to its swift passage in the Senate.
The House’s passage of the Roy-Phillips bill reflects a decision by executives to focus on smaller changes to existing programs like the PPP that were created to help businesses during the pandemic, although a different set Large-scale COVID-19 relief will likely be needed sooner rather than later. Senate leaders have rejected the $ 3 trillion HEROES law and negotiations on an alternative relief measure have yet to begin.
There are two similar bills focused on quick fixes for the PPP circulating in the Senate. The senses. Cory Gardner (R-CO), Angus King (I-ME) and Steve Daines (R-MT) introduced a complementary bill to the Roy-Phillips bill last Friday, and Senator Marco Rubio (R-FL) , chairman of the Senate Small Business Committee, also introduced a bill last week that would give businesses up to 16 weeks to use loans instead of eight weeks. No vote is yet scheduled for either bill in the Senate.
ASAE has advocated for associations’ access to PPP in Senate legislation or in a larger negotiated COVID-19 relief plan that will likely take shape next month.