Congressman Doug LaMalfa supports H.R. 7010, the Paycheck Protection Program Flexibility Act, which would relax restrictions on Paycheck Protection Program (PPP) loan recipients. This bill would:
1. Extend the PPP loan forgiveness period to include costs incurred over 24 weeks after a loan is issued or through Dec, 31, whichever comes first.
2. Extend to Dec. 31 from June 30 a period in which loans can be forgiven if businesses restore staffing or salary levels that were previously reduced.
3. Extend the deadline to apply for a PPP loan to Dec. 31 from June 30.
4. Establish a minimum loan maturity period of five years following an application for loan forgiveness, instead of the current two-year deadline set by the SBA.
5. Changes forgiveness limits to allow for 60 percent payroll/40 percent non-payroll expenses.
LaMalfa said, “The Paycheck Protection Program has become a lifeline for millions of small businesses across the country. However, the program has also shown that Congress needed to provide more flexibility as businesses across the nation begin to safely re-open. Today’s legislation achieves these reforms and helps reinforce the clear national directive that we will support our small businesses during this pandemic.”