Business Coalition Supports Paycheck Protection Flexibility Act to Strike “75/25 Rule” and Extend Loan Forgiveness Period
May 21, 2020
This week, The Real Estate Roundtable along with 27 industry organizations wrote to House Leadership, Speaker Pelosi and Leader McCarthy to express strong support for the recently introduced “Paycheck Protection Flexibility Act,” sponsored by Representatives Dean Phillips and Chip Roy. The legislation would provide enhancements to the Paycheck Protection Program (PPP) that serves as the lifeblood to thousands of small businesses, and we hope it is swiftly considered and passed.
The Paycheck Protection Flexibility Act would significantly improve the PPP by:
1) allowing loan forgiveness for expenses outside of the eight-week period
2) striking the restrictive 75%/25% rule on loan proceed use
3) expanding loan terms beyond two years
4) ensuring full access to payroll tax deferment for businesses that take PPP loans, and
5) extending the June 30, 2020 rehiring deadline to respond to the workforce effects of enhanced Unemployment Insurance.
Taken as a whole, these provisions would empower small businesses to have the autonomy to make their own decisions about how best to meet their obligations to stay in their physical location, retain and hire employees, protect their workers and consumers, and save their businesses.