President Trump Signs Delgado-Backed Measure to Make Paycheck Protection Program More Flexible for Small Businesses and Farms
Law Makes Critical Reforms to PPP Program to Give Businesses Owners & Farmers Needed Flexibility
WASHINGTON, DC—Today, President Trump signed legislation supported by Representative Antonio Delgado (NY-19) to make the Paycheck Protection Program (PPP) more accessible to upstate businesses and farms in need of assistance. Established in the bipartisan CARES Act, PPP provides small businesses and other entities loans of up to $10 million. These loans are designed to assist small businesses in covering payroll and other operating expenses throughout the COVID-19 pandemic. PPP loans are forgiven if the business retains its employees and their salary levels. The legislation signed today, the Paycheck Protection Program Flexibility Act, makes PPP funds more flexible for small business owners and makes forgiveness more accessible.
"Our small businesses and family farmers have faced unprecedented challenges throughout the COVID-19 pandemic, and it is essential that federal resources work for those in need. I am glad to see this legislation signed into law today to make the Paycheck Protection Program (PPP) work better for our business owners and farmers, and give them the flexibility to retain employees and assist with business expenditures. This is a commonsense, bipartisan law and should be the first of many steps to make sure small businesses have resources and support they can rely on," said Rep. Delgado, a member of the House Small Business Committee. "Our small businesses are critical to our upstate economy. I'll keep working in concert with my colleagues on the House Small Business Committee to support our businesses and keep good-paying jobs here in upstate."
The bipartisan Paycheck Protection Program Flexibility Act updates the PPP program to make it more accessible and usable for the vulnerable small businesses that need it most. This bill passed the House on May 28, and the Senate on June 4. The PPP Flexibility Act extends the current 8-week covered loan forgiveness period to 24 weeks and extends the rehiring deadline to December 31, 2020; replaces the 75/25 forgiveness requirement to allow 60% of funds for payroll and 40% for non-payroll expenses; creates a safe harbor for employers unable to rehire; and lengthens the loan terms from two years to five years. The Paycheck Protection Program Flexibility Act would also allow PPP borrowers to continue to access payroll tax deferment and ensure borrowers will not have to make a loan payment until the SBA has made a forgiveness determination.