Cunningham Votes on Bipartisan Legislation to Improve the Paycheck Protection Program

Press Release

Rep. Joe Cunningham (SC-01) today voted to pass bipartisan legislation to improve the Paycheck Protection Program (PPP), by providing much needed flexibility to Lowcountry small business owners.

Congress created the PPP to address the immediate needs of small businesses and allow them to maintain their workforce as stay-at-home orders shuttered businesses. However, some of the loan guidelines have put undue strain on these vulnerable businesses, creating additional roadblocks instead of providing relief.

The PPP Flexibility Act improves the program in the following ways, in order to make it more accessible and usable for vulnerable small businesses:

Allows loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extends the rehiring deadline;
Increases the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent;
Extends the program from June 30th to December 31st;
Extends loan terms from two years to five years; and
Ensures full access to payroll tax deferment for businesses that take PPP loans.

"In the countless conversations I've had with Lowcountry small business owners and workers, it is clear that inflexible, one-size-fits-all rules have prevented many small businesses from fully taking advantage of the Paycheck Protection Program," said Rep. Joe Cunningham. "This bipartisan legislation helps fix those problems and makes this important relief program more accessible and usable for the small businesses that need it the most. I'm glad to see Congress put politics aside today and deliver this needed-relief to our constituents."

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