House bill gives businesses more time to use paycheck protection program loans
ALBUQUERQUE, N.M. — A House bill that was passed earlier this week would give businesses more time to use money from the CARES Act.
The Paycheck Protection Program Flexibility Act increases the length of time companies have to use PPP loan funds and reduces the amount that needs to be used on payroll to have the loans forgiven.
The bill extends the length of time businesses have to use the loans from eight weeks to 24 weeks and pushes back a June 30 deadline to rehire workers.
It also reduces the amount of funding that must be used on payroll from 75 percent to 60 percent.
U.S. Rep. Xochitl Toress Small voted for the bill and said small businesses in New Mexico haven’t had enough time to use the money because a lot of companies have been closed during the pandemic.
“That’s why I fought for getting this legislation that extends that period so they have more time to spend the money when they'll be able to use it and be open and start rebuilding our economy," she said.
“Our local businesses are relying on us to help them weather the economic impacts of this public health emergency, but there were issues in the Paycheck Protection Program that blocked them from getting the help they need,” said U.S. Rep. Deb Haaland.
“So, we’re fixing those problems so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses have the flexibility to get the resources they urgently need,” she added.
Congressman Ben Ray Lujan also supported the bill, which passed the House 417-1.
If approved, the PPP Flexibility Act would give business owners until the end of the year to use money from the loan which can be forgiven if certain requirements are met.
Torres Small also voted for the TRUTH Act, which would have required the Small Business Administration to release the names of the companies that received more than $2 million in PPP loans.
“Unfortunately, in failing to pass the TRUTH Act, Congress has let down small business owners across the country and dealt another blow to their confidence in relief programs. Transparency is essential to accountability, and I urge my colleagues reconsider taking up this legislation.”
The PPP Flexibility Act will now head to the Senate, which is back in session next week.