[Congressional Record Volume 166, Number 100 (Thursday, May 28, 2020)]
[Extensions of Remarks]
[Page E498]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




H.R. 7010, PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020 AND H.R. 
                          6782, THE TRUTH ACT

                                 ______
                                 

                           HON. JOE COURTNEY

                             of connecticut

                    in the house of representatives

                         Thursday, May 28, 2020

  Mr. COURTNEY. Madam Speaker, today the House of Representatives is 
voting on two pieces of legislation designed to improve upon the 
Paycheck Protection Program--the Paycheck Protection Program 
Flexibility Act of 2020, and the TRUTH Act.
  Although I am a cosponsor of both pieces of legislation and will vote 
in favor of them, I remain concerned that these bills fall short of the 
Paycheck Protection Program fixes which were already included in the 
HEROES Act--legislation that the House has passed and which is pending 
action by the Senate.
  For example--I am glad that the Paycheck Protection Program 
Flexibility Act of 2020 includes provisions to modify the use of PPP 
loans, providing businesses with 24 weeks (instead of just 8 weeks) to 
use the loan. This bill also makes more flexible the requirement 
imposed by the Small Business Administration that 75 percent of the 
loan be used for payroll, and instead only requires 60 percent of the 
loan to be used for payroll in order to receive the full amount of 
forgiveness.
  Unfortunately, this bill fails to include many of the provisions from 
the HEROES Act that are urgently needed to assist in our nation's 
economic recovery. For example, the HEROES Act extended eligibility for 
PPP loans to nonprofits of all sizes and would carve out funds 
specifically for the smallest businesses--those with 10 or fewer 
employees--ensuring that they are not left behind. By expanding PPP to 
all nonprofits, the HEROES Act would allow chambers of commerce and 
other nonprofit entities that are not classified as a 501(c)(3) to take 
advantage of this important assistance. Additionally, the HEROES Act 
removes the size restrictions for nonprofits, allowing nonprofits with 
more than 500 employees to still maintain payroll during this time of 
economic hardship, while their services are needed more than ever.
  The HEROES Act--section 20235--also clarifies that expenses paid or 
incurred with proceeds from PPP loans (or EIDL grants) would not result 
in the denial of any federal tax deduction. Small businesses need as 
much support as possible at this time, and tax provisions such as this 
in the HEROES Act would provide a much-needed boost to our economy. 
Unfortunately, the two PPP bills we are voting on in the House today 
fail to include the full gamut of improvements from the HEROES Act, 
including this additional tax assistance for small businesses.
  I will be voting in support of these bills but believe that it is 
essential that we not stop here--Congress must improve the PPP and 
small business assistance beyond what these bills would provide. The 
HEROES Act provides a strong model for what these changes should 
entail, and I urge my colleagues to continue improving these programs, 
even after these PPP bills pass the House.

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