Meng Announces Changes to Paycheck Protection Program to Aid Queens Small Business Owners
Jun 13, 2020
New law will provide more loan flexibility to help entrepreneurs keep their employees on payroll as the nation’s economy begins to reopen; Congresswoman encourages recipients of PPP loans to immediately consult with their lenders for more details
QUEENS, NY – U.S. Rep. Grace Meng (D-Queens) today announced the enactment of the Paycheck Protection Program Flexibility Act (H.R. 7010). The measure, which was passed by Congress and recently signed into law by the President, increases flexibility and access to the Paycheck Protection Program (PPP), an initiative created by the Coronavirus Aid, Relief and Economic Security (CARES) Act that provides loans to struggling small businesses.
“I’ve heard from many constituents about the need to make the Paycheck Protection Program more flexible so that the initiative better meets their needs, such as extending the loan forgiveness period and increasing the amount of the loan that can be spent on non-payroll expenses,” said Meng. “The Paycheck Protection Program Flexibility Act achieves these goals, and makes other enhancements that will benefit small businesses in Queens. Making PPP loans flexible is vital to entrepreneurs, and will help them make decisions that fit their economic needs while retaining their employees. I encourage all PPP loan recipients to consult with their lenders immediately.”
The Paycheck Protection Program Flexibility Act increases flexibility and access to PPP loans by:
Allowing loan forgiveness for expenses beyond the eight-week covered period to 24 weeks, and extending the rehiring deadline;
Increasing the current limitation on nonpayroll expenses (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.
Meng was an original cosponsor of the Paycheck Protection Program Flexibility Act, which passed the passed the House by a vote of 417-1 on May 28.