Legislation Will Provide Greater Flexibility to Small Businesses during the COVID-19 Crisis
WASHINGTON, DC – U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) announced Senate passage of H.R. 7010, the Paycheck Protection Flexibility Act, which will give small businesses in Michigan more time and flexibility to use the forgivable loans they have received due to the COVID-19 crisis. Stabenow and Peters are co-authors of the bipartisan Senate companion legislation, which was introduced last month.
The Paycheck Protection Program (PPP) provides forgivable loans to small businesses and non-profits with fewer than 500 employees and self-employed workers. Under the current program, 75% of the money must go to payroll and only gives businesses 8 weeks to use the money. This bill will allow small businesses to use more of the money on rent and other expenses in addition to lengthening the time businesses have to use their funding from 8 to 24 weeks. The bill passed the House on May 28 and now heads to the President’s desk to be signed.
“While the Paycheck Protection Program has provided critical support for Michigan’s small businesses, it was clear that the program needed fixing to ensure that it worked for those who needed help the most,” said Senator Peters. “I’m glad the Senate was able to come together and unanimously pass important improvements to the Paycheck Protection Program. This was an important step, and I’m going to continue working to ensure that Michigan’s small businesses have the resources they need to get through this pandemic.”
“Our small businesses—from our restaurants to our retailers—have been hit especially hard during the COVID-19 crisis. This bipartisan bill will improve the Paycheck Protection Program, so they can keep their workers on the payroll and their lights on during this pandemic. The President should sign this bill immediately,” said Senator Stabenow.
The Paycheck Protection Program Flexibility Act will:
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