TUCSON— Today, the House of Representatives passed the Paycheck Protection Program Flexibility Act which would fix major issues with the Paycheck Protection Program (PPP) and allow Arizona’s small business owners more flexibility on how they can spend their loan to ensure they can keep their business afloat.
“As the impacts of COVID-19 on small businesses continue to increase, I’ve heard from numerous small business owners across Southern Arizona who are still suffering and worried about the future of their businesses and their workers,” said Rep. Raúl M. Grijalva. “This is not the time to sit on our hands and do nothing, but instead take urgent action to ensure that small businesses—especially minority-, women-, and veteran-owned businesses—have access to the resources they need to keep their employees on the payroll and pay their expenses.”
The PPP Flexibility Act makes important changes to PPP loans by:
- Extending the forgiveness of expenses beyond the 8-week period to 24 weeks and extending the rehiring deadline,
- Allowing small businesses to spend more on nonpayroll expenses.
- Extending the program from June 30 to December 31
- Extending loan terms from two to five years
- Ensuring access to payroll tax deferment for those taking PPP loans.
“COVID-19 has brought an unprecedented crisis that warrants an unprecedented response,” continued Rep. Grijalva. “Now, it’s time for the Senate to recognize this urgency and pass this legislation that our workers and small businesses so desperately need.”