Media

Washington, DC – Representative Jim Baird (R-IN) voted for H.R. 7010, the Paycheck Protection Program Flexibility Act. The PPP was designed to provide small businesses the opportunity to retain employees during the pandemic in an effort to expedite recovery upon reopening. This recent legislation provides greater flexibility in that program for small businesses developing their reopening strategies. Not every business is at the same stage and the refinements is this legislation will provide more choices.

“This legislation will give Hoosier small businesses additional flexibility in designing their plan for successful reopening and long term recovery.” Representative Baird said.

This legislation will extend the forgiveness period for PPP loans from 8 weeks to 24 weeks to accommodate businesses who are in different stages of reopening and gives more time to rebuild back to pre-COVID-19 levels. Those that prefer to stay within the 8-week window can opt-out of the extension. It changes the rule from requiring businesses to use 75% of the loan for payroll to 60% and will have until December 31, 2020 to rehire employees. This will allow businesses more choices on how to use their loan funds and still remain compliant for loan forgiveness.

In addition, new PPP loans will receive a 5-year maturity. Existing loans will continue at a 2-year maturity. Businesses that receive loan forgiveness can also receive a payroll tax deferment.

Each state is in a different stage of easing their restrictions, making it difficult for some businesses to abide by the original PPP rules. The flexibility offered in this legislation will better help small businesses across the country adapt to their local situation.

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