Loeffler Praises Senate Passage of Legislation Expanding Flexibility for PPP Loans
Loeffler Spearheaded Similar Bill to Further Improve Flexibility for Small Businesses
WASHINGTON, DC – U.S. Senator Kelly Loeffler (R-Ga.), who has been pushing to give small businesses more flexibility with Paycheck Protection Program loans, praised the Senate’s unanimous passage of H.R. 7010, the Paycheck Protection Program Flexibility Act. The legislation passed in the U.S. House of Representatives last week and now will go to President Trump to sign into law.
This legislation modifies coverage for loan forgiveness from eight to 24 weeks, extends the timeframe businesses can apply for a loan, ensures full access to payroll tax deferment for businesses that receive PPP loans, delays the deadline to rehire employees to offset the effect of enhanced unemployment insurance and allows businesses to spend up to 40% of their loan on expenses outside payroll, instead of the previously required 25%.
Earlier this week, as part of her USA RISE Plan, Loeffler introduced similar legislation to give small businesses more flexibility with PPP loans in response to the feedback she has received from many Georgia businesses. For example, Loeffler’s bill would allow businesses to spend up to 50% of the loan on non-payroll expenses such as rent, and would allow the eight-week loan forgiveness period to start later to accommodate those businesses that aren’t able to open immediately.
“Small businesses employ nearly half of all Americans and embody the American entrepreneurial spirit,” said Loeffler. “Amid the coronavirus pandemic, the Paycheck Protection Program has provided much-needed relief to main street businesses and saved millions of jobs. More than 136,000 PPP loans totaling nearly $14 billion have been approved in Georgia alone. By passing the Paycheck Protection Program Flexibility Act, we are improving the program in order to help businesses keep their doors open and employees on payroll. While my bill, the PPP Time Act, goes a step further by giving businesses additional flexibility to use more of the loan to pay down their rent, mortgage and utilities, I’m encouraged that small businesses are getting the help and flexibility they need now to weather this ongoing crisis.”