Peterson Takes Action to Help Minnesota Workers and Small Businesses, Votes to Pass Key Fixes to Paycheck Protection Program
WASHINGTON D.C. – Today, Representative Collin Peterson voted to pass a critical, bipartisan bill to deliver further relief for Minnesota's small businesses. Led by Congressman Dean Phillips of Minnesota, H.R. 7010, the Paycheck Protection Program Flexibility Act solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners in Minnesota and across the country who are struggling the most as a result of the coronavirus.
“I have been hearing from countless small business owners in the Seventh District who are in desperate need of assistance as the coronavirus crisis continues to exact a devastating toll on our economy,” said Rep. Peterson. “The ongoing crisis requires us to provide urgently-needed fixes to the PPP program so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses, have the flexibility to obtain the assistance they urgently need.”
“Many small businesses in Minnesota, as well as across the country, have reported that the current limit in the PPP program of only 25 percent of loan proceeds being used for nonpayroll expenses such as rent, prevents them for applying for PPP loans,” Rep. Peterson added. “For many small businesses, including for example small independent restaurants, their rent or mortgage interest tend to be significantly more than 25 percent of their total monthly expenses. Hence, to address their concerns, this bill raises that percentage from 25 percent to 40 percent.”
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.
“This unprecedented coronavirus pandemic has inflicted a staggering toll on hard-working Minnesotans and all Americans,” continued Rep. Peterson. “The overwhelming scale of this health and economic crisis demands that we take decisive action to protect the health and safety of our communities and the economic well-being of workers and small businesses. House Democrats are committed to doing whatever is necessary to get American small businesses and workers back on their feet. The American people deserve no less.”
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