Washington, D.C. – The Economic Innovation Group (EIG) today urged the House of Representatives to pass the Paycheck Protection Program (PPP) Flexibility Act, legislation that would meaningfully improve PPP and make it more effective in addressing the needs of small businesses during the economic crisis.
“The Paycheck Protection Program Flexibility Act will ensure PPP is a more effective lifeline for businesses deeply affected by the COVID-19 crisis,” said John Lettieri, President and CEO of the Economic Innovation Group. “We urge Congress to move quickly to pass this important legislation, which incorporates several key recommendations advanced by EIG and our industry partners.”
America’s small businesses are facing unprecedented disruption due to the COVID-19 pandemic. The Paycheck Protection Program is an important first step in providing emergency relief. However, the program‘s rules and structure have posed major challenges for businesses attempting to navigate a prolonged period of lost revenue and operational disruption. Last month, EIG issued a set of recommendations for improving PPP that was endorsed by 20 industry associations representing businesses deeply impacted by the pandemic.
“Too many small businesses are in limbo, fearful that provisions in the Paycheck Protection Program will add burdens instead of relieving them,” said Chris Slevin, Vice President of EIG. “The Paycheck Protection Program Flexibility Act proposes timely, practical improvements that will allow more businesses to utilize PPP to weather this period of uncertainty.”
The Paycheck Protection Program Flexibility Act would:
- Extend the loan forgiveness period from 8 weeks to 24 weeks
- Ease the limitation on loan forgiveness for non-payroll expenses
- Eliminate restrictions that limit loan terms to 2 years for future borrowers
- Ensure full access to payroll tax deferment for businesses that take PPP loans
- Extend the June 30 rehiring deadline
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is an ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C. and led by an experienced, bipartisan team, EIG convenes leading experts from the public and private sectors, develops original policy research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.