Cartwright Takes Action to Help NEPA Workers and Small Businesses, Votes to Pass Key Improvements to Paycheck Protection Program
Washington, D.C. – U.S. Representative Matt Cartwright (PA-08) today voted to pass critical legislation in the U.S. House to deliver further relief for northeastern Pennsylvania’s small businesses. The Paycheck Protection Program Flexibility Act address urgent issues with the Paycheck Protection Program (PPP) facing small business owners who are struggling the most as a result of the coronavirus. It now goes to the U.S. Senate for consideration.
“No two businesses are exactly alike, and our coronavirus relief programs should reflect that,” Cartwright said. “I’ve heard business owners’ concerns about PPP, and this legislation takes steps to address them by extending loan forgiveness and ensuring owners can use the money in the way that works best for them and their employees.”
The bill, which passed with Democratic and Republican support, will increase flexibility and access to PPP loans by:
- Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- Increasing the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
- Extending the program from June 30 to December 31;
- Extending loan terms from two to five years; and
- Ensuring full access to payroll tax deferment for businesses that take PPP loans.
The text of the Paycheck Protection Program Flexibility Act can be viewed here.