Rep. Payne, Jr. Clarifies Paycheck Protection Program Flexibility Act for Local Businesses
Media Contact: Patrick Wright -- Patrick.Wright@mail.house.gov
Washington, D.C. — Congressman Donald M. Payne, Jr. issued the flowing statement today regarding the Paycheck Protection Program Flexibility Act after hearing concerns from constituents about taking coronavirus stimulus funds. The new law (H.R. 7010) modifies the Payment Protection Program established in the CARES Act stimulus package with extensions for companies to qualify for loan forgiveness. Also, it includes new provisions to allow employers to forego repayment of the loan if they are unable to hire qualified employees or if their revenues fail to return to pre-coronavirus levels.
“I heard from small business owners who were reluctant to take stimulus money they needed because they were concerned about repayment. This law gave small businesses that take loans 24 weeks to spend the money instead of eight weeks. It reduces the amount of loan money they must spend on payroll from 75 percent to 60 percent. It provides these businesses more opportunities to turn the loans into a grant, which they wouldn’t have to pay back. In addition, it extends the time to repay the loan from two years to five years. I am glad to have voted for this law because we needed to help small business owners feel better about accepting the government assistance we provided them in the CARES Act.”
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