Congressman John Sarbanes (D-Md.) today voted to pass the Paycheck Protection Program (PPP) Flexibility Act (H.R. 7010), a bill to enhance PPP and help small businesses maximize available COVID-19 economic relief.
“Small businesses in Maryland and across the country continue to bear the brunt of this public health emergency and financial crisis,” said Congressman Sarbanes. “We must continue to increase access to federal COVID-19 economic relief and strengthen these critical programs to help American small businesses and employees get to the other side of this pandemic.”
Key provisions of the PPP Flexibility Act include:
- Extending the PPP loan forgiveness period from 8 weeks to 24 weeks;
- Allowing small businesses to spend 40 percent (up from 25 percent) of their PPP relief funding on nonpayroll expenses, including rent, utility payments and mortgage interest;
- Extending the PPP program from June 30 to December 31;
- Increasing PPP loan terms from two years to five years; and
- Ensuring that small businesses that receive PPP funding have full access to payroll tax deferment.