Congressman Ryan Votes to Improve the Payroll Protection Program (PPP) and Provide Small Businesses with More Flexibility
Washington, DC – Congressman Tim Ryan (OH-13) today voted in support of two bipartisan bills that will improve the Payroll Protection Program: The Payroll Protection Program Flexibility Act and the TRUTH Act.
The Payroll Protection Program Flexibility Act will provide small businesses more flexibility by allowing up to 40% of loan proceeds to be spent on non-payroll expenses—an increase from 25%. The bill also expands the deadline for loan forgiveness from the eight-week covered period to 24 weeks and extending the rehiring deadline. Small businesses need the flexibility to spread the loan proceeds over the full course of the crisis, until demand returns. The TRUTH Act will improve transparency in SBA lending by requiring the SBA to identify borrowers who seek loans of more than $2 million and to publicly disclose the amount of assistance given to socially and economically disadvantaged small business owners, and women and veteran-owned small businesses.
“I know that small businesses in Northeast Ohio are struggling to make ends meet and this legislation will provide them with the flexibility and additional support they need,” said Congressman Tim Ryan. “I have heard from small businesses across the spectrum – from restaurants to entertainment venues, from small manufacturers to retailers – and they all need help. While this legislation is far from perfect, it will give our small businesses the additional flexibility and time they need.”
Members of Congress have heard from small business owners who struggle to meet the requirements to receive a loan and make the loan forgivable. This legislation extends the loan terms from two to five years, giving businesses additional time to achieve enough revenue to pay back the loans. Increasing the amount spendable on non-payroll expenses from 25% to 40% will help with rent, mortgage and utility payments. The Payroll Protection Program Flexibility Act is supported by the National Restaurant Association, the Independent Restaurant Association, the National Association of Women Business Owners, the National Association of Manufacturers, and other national and regional organizations.