Upton issues statement after Paycheck Protection Program Flexibility Act becomes law
WASHINGTON, D.C. – U.S. Rep. Fred Upton, R-St. Joseph, today issued a statement after the bipartisan Paycheck Protection Program Flexibility Act was signed into law by President Donald Trump. Upton was an original cosponsor of the legislation, which passed the U.S. House of Representatives last week by a vote of 417 – 1.
This bipartisan legislation extends loan forgiveness beyond the original 8-week timeline, eliminate restrictions limiting non-payroll expenses to 25% of loan proceeds, extends the 2-year limit on loan repayment, ensure full access to payroll tax deferment, and expand the rehiring deadline to offset the effect of increased unemployment benefits. These five modifications will help simplify the loan process and grant more flexibility to businesses in states that have not yet lifted some restrictions.
“The Paycheck Protection Program (PPP) has been a real lifeline for small businesses during the coronavirus pandemic, but immediate reforms were badly needed,” said Upton. “The PPP needed to be extended. As much as we wanted to be opened by Easter, that was not the reality, as most of the country is just now starting to reopen and small businesses work to get back on their feet. This is real relief for our small businesses and the millions of employees that they employ.”
The PPP was implemented as part of the CARES Act, which was passed by the U.S. House of Representatives and signed by President Trump on March 27th. To date, the PPP has provided more than 4.4 million loans totaling more than $535 billion in federal funding to small businesses and their employees across the country.