Rep. Weber Statement on the Paycheck Protection Program (PPP) Flexibility Act
Washington, May 29, 2020
Washington, D.C. – May 28, 2020, U.S. Rep. Randy Weber (R-TX) released the following statement on the Paycheck Protection Program (PPP) Flexibility Act: Thi
This bill provides businesses and employees more security by allowing employers greater flexibility during reopening.
"The PPP Flexibility Act extends the original PPP forgiveness period from 8 weeks to 24 weeks. The original rule also required that 75 percent of the loan must be used on payroll, limited the loan maturity period to two years, and did not defer payroll taxes. Our bill—if passed by the Senate and signed into law by President Trump—gives small businesses more time to rebuild: it extends loan maturity from two to five years, lowers the percentage of funds that must be used on payroll (to 60 percent), includes a payroll tax deferment, lowers the penalty for high unemployment, and enhances workers’ security by requiring that employers must rehire employees by December 31, 2020, for loans to be forgiven.
"While we are seeing positive signs of the economy improving, it is imperative that we protect business and workers through each stage of reopening. Small businesses are essential to the prosperity of our local communities and our nation as they create more than 75 percent of the new jobs in America and pay out more than 44 percent of the country’s private payroll. Small businesses are the backbone of America, and this bill will keep America working."