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Engel, House Take Action to Help Workers and Small Businesses

Engel, House Take Action to Help Workers and Small Businesses

Today, Congressman Eliot Engel voted to pass H.R. 7010, the Paycheck Protection Program Flexibility Act, legislation that solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners and workers in New York.

“Since this pandemic began Congress has worked non-stop to provide relief for small businesses and their employees, but major pieces of legislation often require adjustments afterwards to ensure they work correctly,” Engel said. “Right now when a small business applies for a PPP loan, only 25 percent of the loan amount can be used for nonpayroll expenses, like rent. This cap has prevented many small businesses from applying for PPP loans, as their rent and utility costs alone often exceed 25 percent of the loan total. To address this concern, we passed today’s bill which raises that percentage cap from 25 percent to 40 percent. This should allow for more small businesses to apply for PPP loans, thus helping them and their employees stay afloat during this crisis.” 

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.