PRESS RELEASE: Congressman Vela Lauds Passage of Paycheck Protection Program Flexibility Act of 2020
Washington, DC – On Thursday, Congressman Filemon Vela announced the passage of the Paycheck Protection Program Flexibility Act of 2020, a stand-alone bipartisan bill that makes much needed changes to the small-business loan program.
The Paycheck Protection Program Flexibility Act eliminates the requirement that no more than 25 percent of the loan be spent on non-payroll related expenses, benefiting businesses with high capital costs relative to labor expenses. The bill also extends the period in which businesses must use the loan to qualify for forgiveness from eight to 24 weeks.
Additional provisions in the legislation extend the time employers have to reinstate their full-time employees beyond the existing June 30 deadline, and extend the period for paying back loans that will not be forgiven beyond two years.
“I am proud to have voted in support of the Paycheck Protection Program Flexibility Act of 2020,” said Congressman Vela. “This important piece of legislation will remove obstacles that businesses in my district have faced in seeking relief under the forgivable loan program. As the uncertainty of this public health crisis continues to grow, I remain committed to ensuring businesses in my community and across the nation have access to the resources they need to see it through these difficult times.”
A second bill, The Reporting for the Underbanked and Taxpayers at Home (TRUTH) Act, would have required the Small Business Administration to issue a report on businesses that received more than $2 million in small business aid under the CARES Act. Unfortunately, this important transparency bill failed to pass under suspension of the rules by a vote of 269 to 147.
“I am disappointed that the TRUTH Act failed to receive enough support to pass,” said Congressman Vela. “This important legislation would explain and justify disbursement of relief funds by the Small Business Administration, ensuring transparency and accountability and allowing the SBA to focus their efforts to ensure that the smallest and most vulnerable businesses can survive and thrive.”
Click here to read the full text of the Paycheck Protection Program Flexibility Act of 2020.
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