PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Statement of SBE Council’s Kerrigan on House Passage of “Paycheck Protection Flexibility Act”

By at 28 May, 2020, 1:19 pm

NEWS

For Immediate Release

Washington, D.C.- Today, the U.S. House passed the “Paycheck Protection Flexibility Act,” H.R. 7010. Small Business & Entrepreneurship Council president & CEO Karen Kerrigan issued the following statement on the legislation’s passage, which makes key fixes to the Paycheck Protection Program (PPP):

“There are many important improvements and updates to PPP included in H.R. 7010 that will make it a more effective program for small businesses. The flexibility provided by these changes aligns with the practical needs of small business owners and evolving economic conditions on the ground. The pace of recovery will vary greatly depending on state and local re-opening timelines and guidelines, and demand. Many of the changes to PPP will give small business owners the room and time they need to respond to local conditions and market demand.

“Obviously, we supported a big fix to the 75-25 rule. While disappointed by the 60-40 compromise, it was positive to see some movement on this critical issue. This will continue to be a barrier for some small businesses in accessing the program, but we are hopeful PPP loan demand will pick up once the other PPP changes are signed into law.  We ask that if there is to be additional guidance forthcoming from the SBA and Treasury, once the bill becomes law, that it be clear and speedy.”

Among other provisions, H.R. 7010 includes key changes advocated by SBE Council, including:

● Extension of the covered period to December 31, 2020

● Common sense rehire flexibility rules for loan forgiveness

● Extending the 8-week loan forgiveness window to 24 weeks

SBE Council will continue to monitor and advocate for reforms of the PPP and EIDL programs. For example, SBE Council is pushing for a rule change to allow for technology software expenses as they relate to administering payroll to be included as a forgivable expense in PPP, along with other essential expenses.

Contact:  
Karen Kerrigan, SBE Council president & CEO
e-mail: kkerrigan@sbecouncil.org   

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org @SBECouncil

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