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WASHINGTON, DC - Today, Congresswoman Debbie Dingell (D-MI) voted in support of bipartisan legislation to provide further relief for Michigan small businesses by passing legislation to improve the Payroll Protection Program and help small businesses cope with the economic impacts of COVID-19. 

“Every day we hear from small businesses who are struggling to get by,” said Dingell. “They need continued relief with making payroll for workers and staying in business as we begin the reopening process. The ongoing crisis requires us to provide urgently-needed fixes to the PPP program so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses, have the flexibility to obtain the assistance they urgently need. Every small businesses owner deserves to have the piece in mind knowing they will have continued relief for as long as they need.”

Under the current Paycheck Protection Program, the loan converts to a grant as long as the small business uses the loan within eight weeks of the CARES Act enactment – June 30 – and uses at least 75 percent of the loan proceeds on payroll and the rest for such necessary expenses as rent, mortgage interest, and utilities. Many small businesses, particularly very small businesses, have reported that, with these restrictions, the loans do not meet their needs. 

The bipartisan PPP Flexibility Act will increase flexibility and access to PPP loans including by:

• Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;

• Increasing the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
• Extending the program from June 30 to December 31;
• Extending loan terms from two to five years; and
• Ensuring full access to payroll tax deferment for businesses that take PPP loans.