U.S. Senator Todd Young (R-Ind.) told small businesses “relief is on the way” after a fix to the Paycheck Protection Program (PPP) passed unanimously Wednesday. Senator Young proposed a similar measure in his RESTART Act last month.
H.R. 7010, the Paycheck Protection Program Flexibility Act, extends the forgiveness period for PPP loans from eight weeks to 24 weeks to provide recipients with more time to spend the PPP funds. Young proposed a similar extension in the RESTART Act.
Young
“I talked to countless small business owners across the state who were unable to reopen and rehire their staffs in the allotted eight weeks,” Young said. “We listened, and relief is on the way so that businesses that endure this pandemic are not saddled with additional debt.”
The measure also lowers the percentage required to be spent on payroll from 75 percent to 60 percent, extends the repayment period from two years to five years, and allows payroll tax deferral for PPP recipients. The bill will now head to the President’s desk.
The second portion of the RESTART Act introduced by Young and Senator Michael Bennet (D-Colo.) creates a new loan program covering up to six months of payroll and expenses for the hardest hit businesses. Young says he will continue to push for that program to be included in future relief packages.