Delgado-Backed Paycheck Protection Program For Farms Approved

U.S. Representative Antonio Delgado (NY-19) voted with a broad bipartisan coalition to add flexibility to the Paycheck Protection Program (PPP) and make this tool more accessible to upstate businesses in need of assistance. Established in the bipartisan CARES Act, PPP provides small businesses and other entities loans of up to $10 million. These cover payroll and other operating expenses, and PPP is designed so loans are forgiven if the business retains its employees and their salary levels. The bipartisan Paycheck Protection Program Flexibility Act extends the loan forgiveness requirements and rehiring deadline so that the PPP works better for small businesses in need of assistance.

“I continue to hear from small businesses on my Small Business Advisory Committee and across NY-19 about the need for additional flexibility in the Paycheck Protection Program and I’m glad to join in voting for legislation that makes sure this program helps small and micro-businesses that form the backbone of our economy and provide good paying jobs in upstate. The bipartisan measure passed by the House today will allow more businesses and agricultural producers to use these funds as they chart new paths to reopening,” said Rep. Delgado, a member of the House Small Business Committee. “I’ll keep fighting to get upstate New York businesses the resources they need to recover from this public health emergency.”

The bipartisan Paycheck Protection Program Flexibility Act makes updates to the PPP program to make it more accessible and usable for the vulnerable small businesses that need it most. This legislation updates the current 8-week covered loan forgiveness period to 24 weeks and extends the rehiring deadline; increases the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent; extends the program from June 30 to December 31; and lengthens the loan terms from two years to five years. The Paycheck Protection Program Flexibility Act would also give small businesses full access to payroll tax deferment for businesses and ensure borrowers will not have to make a loan payment until the SBA has made a forgiveness determination.

This bipartisan bill is supported by the National Small Business Association, Small Business Majority, Small Business Roundtable, U.S. Chamber of Commerce, National Restaurant Association, Independent Restaurant Association, NFIB, U.S. Hispanic Chamber of Commerce, National Association of Women Business Owners, US Travel Association, American Hotel and Lodging Association, Associated General Contractors of America, National Independent Automobile Dealers Association, National Association of Wholesaler-Distributors, National Newspaper Association, and National Association of Manufacturers.