PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

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

By at 3 June, 2020, 7:56 pm

NEWS

For Immediate Release

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

“We are pleased the Senate acted quickly on H.R. 7010, which makes important changes to PPP. These changes will make the program more effective and relevant for many small businesses and provide business owners with the flexibility they need to navigate re-openings, uncertain demand and labor challenges.

“SBE Council will continue to work on administrative fixes to the 75-25 rule, which was changed to 60-40 in the legislation. Though the presence of the rule still presents a barrier for some small businesses in accessing the program, at least it is eased which could be helpful for others. We are hopeful PPP loan demand will pick up once the other changes are implemented.

“Small businesses would also like to see an expansion of the essential expenses that are forgivable under PPP. We are working to add technology costs – such as cloud services – to the list of forgivable expenses, as these tools are as vital as utilities and the internet to small businesses. Platforms and cloud services have allowed small businesses to communicate with customers, close sales, manage and collaborate with employees, make payroll and operate virtually during the shutdown. These tools will continue to play a vital role in business operations in the days ahead.

“We ask that if there is to be additional guidance coming from the SBA and Treasury on H.R. 7010, once it becomes law, that it be clear and speedy.”

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

● 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.

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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