U.S. Rep. Elissa Slotkin (D-Holly), a co-sponsor of the Paycheck Protection Flexibility Act, joined members on both sides of the aisle in the Problem Solvers Caucus to formally endorse the legislation. The House is expected to vote May 28 on the bill that will make important changes to the Paycheck Protection Program (PPP), in line with specific concerns cited by Michigan businesses.
“I hear it every day: Michigan small business owners are grateful for PPP loans, but don’t know if they can spend most of the money within the required eight weeks –– particularly with so many of our businesses not yet open,” Slotkin said. “Our businesses need the added time and flexibility this bill provides. I’m thrilled to join my colleagues on both sides of the aisle in the Problem Solvers Caucus to support this bipartisan fix to the PPP program.”
“This bill extends the time businesses have to use PPP funds from eight to 24 weeks, and adds flexibility for our businesses so they can use the funds in the ways they need. It’s not complicated: this bill helps entrepreneurs, workers, and our local economies, and I hope we can move quickly to get it passed and signed into law.”
The Paycheck Protection Program Flexibility Act will create more flexibility for small businesses by:
• Extending the expense forgiveness period beyond the originally stipulated eight weeks to 24 weeks.
• Adjusting the 75 percent-to-payroll requirement, and therefore eliminating restrictions limiting non-payroll expenses to 25 percent of loan proceeds. This gives businesses more flexibility to cover mortgage, rent, and utilities.
• Eliminating two-year loan repayment restrictions.
• Prohibiting mutual exclusivity of PPP loans and payroll tax deferments, which allows businesses to take advantage of both payroll tax deferments and PPP loans.
• Dropping the June 30 rehire deadline, so that businesses that make a good faith attempt to rehire all of their employees, but are unable to, should still be able to receive loan forgiveness.