Seeking relief
The next phase of business relief legislation from Washington has been in process for weeks now, and on Wednesday the House approved a bill resulting from those efforts.
The legislation makes key changes to the Paycheck Protection Program (PPP), a $700 billion loan program which was part of the federal CARES ACT and helps small businesses continue to pay workers during the pandemic. Employers have long been asking for more flexibility in the program's requirements, and some said restrictions discouraged them from applying. U.S. Rep. Peter Welch, of Vermont, was a co-sponsor of Wednesday's bill.
“The Payroll Protection Program has provided much-needed funds for thousands of Vermont businesses devastated by the pandemic, but the strict SBA loan forgiveness requirements make the program unworkable for many businesses,” Welch said.
According to Welch, the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) does the following:
Allows forgiveness for expenses beyond the current 8-week covered period to 24 weeks and extends the rehiring deadline.
Increases the limit for non-payroll expenses from 25 percent to 40 percent to better match business expenditures.
Extends loan terms from 2 years to 5 years for new loans.
Ensures full access to payroll tax deferment for recipients of PPP loans.
This legislation was another step forward in the recovery process for the business community. Now, all eyes will be on the U.S. Senate, which is considering a similar bill.
Recently, unity of purpose has been a challenge for Congress. As states continue to move through reopening, a good portion of the business community will continue to need help for some time. Part of the solution will be federal money, and state budgets are facing the same picture.
Throughout the U.S. over the past two months, many Americans have been using compassionate collaboration to get each other through the most difficult moments of this pandemic. That loving, caring attitude doesn't have to be separate from political discussions — rather, proofs of that love surround those discussions, in our very communities. Those heartfelt efforts to help one another will have lasting influence on these important solutions, whatever form the future may take, because our collective desire to be of service will not be moved.
— Gareth Henderson
