Newly passed bill makes key fixes to Paycheck Protection Program
On Thursday, May 28, 2020, the House of Representatives passed the bipartisan Paycheck Protection Program (PPP) Flexibility Act, cosponsored by U.S. Congressman Josh Gottheimer (NJ-5), in a 417-1 vote. The bill makes important fixes and provides essential flexibility to PPP loans that will help small businesses and jobs in North Jersey.
Gottheimer spoke on the House floor today in favor of the PPP Flexibility Act.
“I’ve heard over and over again from small businesses in my community in northern New Jersey that they are so grateful for the PPP loan forgiveness program and all the jobs and businesses it helps protect — but they need more flexibility with the formula and time frame,” said Congressman Josh Gottheimer (NJ-5) on the House floor today. “They need more time with the loan and more flexibility in how to spend it, from salaries to rent. I’m proud that this bipartisan legislation does exactly that.”
Gottheimer continued, “New Jersey’s economy, including all of our small businesses, want to make sure their businesses can stay open at the end of this pandemic, they want to keep all their workers, they want to keep giving back to our communities, they want to grow our businesses, and give back to our state — but they need our help. I’m hoping the Senate acts quickly to take it up.”
According to the most recent data from the U.S. Small Business Administration, more than 131,000 PPP loans have been processed to New Jersey’s small businesses, totaling more than $16.8 billion. More PPP loans are being processed each day.
The bipartisan bill, which was endorsed by the Problem Solvers Caucus, co-chaired by Gottheimer, will create more flexibility for small businesses by:
- Extending the forgiveness period for expenses from 8 weeks to 24 weeks;
- Increasing the ratio limitation on the use of loans for non-payroll expenses — like rent, mortgage, and utilities — from 25% to 40;
- Eliminating two-year loan repayment restrictions for future borrowers by extending loan terms from two years to five years;
- Ensuring full access to payroll tax deferment for PPP recipients; and
- Extending the June 30 rehiring deadline.
Watch Gottheimer’s remarks on the House floor HERE.