WASHINGTON, D.C. – Congressman Clay Higgins (R-LA) voted for H.R. 7010, the Paycheck Protection Program (PPP) Flexibility Act, which grants small businesses greater flexibility over how they utilize PPP relief funds.
The bill would:
- Extend the covered period from 8 weeks to 24 weeks.
- Replace the 75/25 rule with a 60/40 rule to give small businesses more choice in how they use their loan funds.
- Grant a 5-year maturity for all new PPP loans to give small businesses more time to rebuild.
- Allow businesses that receive forgiveness to also receive payroll tax deferment.
Congressman Higgins issued the following statement:
“To date, small businesses in Louisiana have received over $7.2 billion in financial relief through PPP. However, each business faces unique financial challenges. Not every small business has the same structure or same payroll to overhead cost-ratio. The improvements in this legislation help address those concerns and provide business owners with greater flexibility over how to use their loan. Empowering businesses in their efforts to rebuild is critical as we seek a larger economic recovery.”