WASHINGTON, D.C. (WCBD) – On Thursday, Representative Joe Cunningham voted in favor of the Paycheck Protection Program (PPP) Flexibility Act, bipartisan legislation designed to improve the already established program that helps small businesses negatively impacted by the COVID-19 pandemic. The bill passed in the House.
The Act is designed to make PPP funding “more accessible and usable for vulnerable small businesses” in a variety of ways:
- Allows loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extends the rehiring deadline
- Increases the current limitation on the use of loan proceeds for non-payroll expenses from 25% to 40%
- Extends the program from June 30th to December 31st
- Extends loan terms from two years to five years
- Ensures full access to payroll tax deferment for businesses that take PPP loans
Cunningham said that “inflexible, one-size-fits-all rules” have made it hard for many small businesses in the Lowcountry to benefit from the PPP. Adding flexibility to the program will “make this important relief program more accessible and usable for the small businesses that need it the most.” He continued, saying that he was “glad to see Congress put politics aside today and deliver this needed relief to [their] constituents.”