House Passes Johnson Supported Bill to Assist Small Businesses
Washington, D.C. – U.S. Representative Dusty Johnson (R-S.D.) issued a statement following the U.S. House passage of the Paycheck Protection Program Flexibility Act of 2020, a bill Johnson cosponsored to revamp some of the rules within the current PPP:
“More than 20,000 South Dakota small businesses have utilized the Paycheck Protection Program,” said Johnson. “After hearing from local business owners, we discovered ways to improve the program and fix it where it fell short. I’m proud to support these changes, and I’m glad the House passed this important piece of legislation.”
The Paycheck Protection Program Flexibility Act:
- Allows forgiveness for expenses beyond the 8-week covered period. Until the crisis ends, businesses need flexibility to spread these funds out. We don’t want to see employees furloughed once the 8-weeks is up.
- Provides flexibility to employers on the forgivable ratio of business expenses. Not all businesses’ payroll makes up 75% of their costs. This flexibility will allow small businesses to have more rent, mortgage, and utilities costs forgiven through the PPP.
- Provides a rehiring safe harbor for businesses unable to rehire employees by June 30, 2020. Because states are still partially shutdown, businesses that make a good faith effort to rehire, but are unable to, should still be able to receive loan forgiveness.