Larson Votes for Critical Assistance for Small Businesses
Washington, D.C. – Today, Rep. John B. Larson (CT-01) voted for the bipartisan PPP Flexibility Act to ensure that the Paycheck Protection Program better reflects small businesses’ needs.
“I have heard from hundreds of small businesses in the First District since the beginning of the pandemic. Despite the relief provided by the Paycheck Protection Program (PPP), the current guidelines have proved to be too restrictive. Many businesses have been forced to close their doors for an indefinite period of time. Those that have reopened are finding business slow to return.
“The PPP was designed to provide small businesses with relief and to help them keep employees on the payroll. Although the program has provided over $2.5 billion in relief to businesses in the State of Connecticut, many have chosen not to apply for the program or have returned funds due to current limitations.
“The PPP Flexibility Act specifically extends the forgiveness period for expenses from 8 weeks to 24 weeks, increases the use of the loan proceeds for non-payroll expenses, and extends loan terms to 5 years. We should be doing everything we can to help small businesses through this crisis. This bill is a step in that direction,” said Larson.
The PPP Flexibility Act improves the PPP program by:
- Allowing loan forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- Increasing the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent;
- Extending the program from June 30 to December 31;
- Extending loan terms from two years to five years; and
- Ensuring full access to payroll tax deferment for businesses that take PPP loans.