To read more about the Paycheck Protection Program Flexibility Act, click here.
Texas Border Business
Laredo, TX – Congressman Henry Cuellar (TX-28) applauds the Senate passage of the Paycheck Protection Program Flexibility Act, bipartisan legislation delivering further relief for Texas small businesses. Congressman Cuellar co-sponsored and helped pass this critical legislation in the House to help alleviate the financial burden facing small business owners across the country. The bill will now head to the President’s desk for his signature.
“The unprecedented coronavirus pandemic has inflicted a staggering toll on hard-working Texans and their small businesses,” said Congressman Cuellar. “We must do whatever is necessary to get American small businesses and workers back on their feet. The American people deserve no less. This critical legislation will support Main Street businesses by providing desperately-needed flexibility in loan forgiveness. As a member of the Bipartisan White House Task Force, I will continue to fight to protect the health and safety of our communities and the economic well-being of workers and small businesses.”
Many small businesses in the state of Texas have reported that the current limit in the PPP program of only 25 percent of loan proceeds being used for nonpayroll expenses such as rent, prevents them for applying for PPP loans. For many small businesses, their rent or mortgage interest tend to be significantly more than 25 percent of their total monthly expenses. To address these concerns, this bill raises that percentage from 25 percent to 40 percent.
The bipartisan PPP Flexibility Act will increase flexibility and access to PPP loans including 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.
This bipartisan bill is supported by numerous organizations, including the U.S. Chamber of Commerce, National Small Business Association, Small Business Majority, Small Business Roundtable, National Restaurant Association, Independent Restaurant Association, NFIB, International Franchise Association (IFA), U.S. Hispanic Chamber of Commerce, National Association of Women Business Owners, US Travel Association, American Hotel, and Lodging Association, Associated General Contractors of America, National Independent Automobile Dealers Association, National Association of Wholesaler-Distributors, National Newspaper Association, National Association of Manufacturers, and others.
To read more about the Paycheck Protection Program Flexibility Act, click here.
 applauds the Senate passage of the Paycheck Protection Program Flexibility Act, bipartisan legislation delivering further relief for Texas small businesses.){kind=link}