[Congressional Record Volume 166, Number 100 (Thursday, May 28, 2020)]
[House]
[Pages H2332-H2338]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 7010) to amend the Small Business Act and the CARES Act to 
modify certain provisions related to the forgiveness of loans under the 
paycheck protection program, to allow recipients of loan forgiveness 
under the paycheck protection program to defer payroll taxes, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 7010

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Paycheck Protection Program 
     Flexibility Act of 2020''.

     SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE AFTER 
                   APPLICATION OF FORGIVENESS.

       (a) In General.--Section 7(a)(36)(K)(ii) of the Small 
     Business Act (15 U.S.C. 636(a)(36))

[[Page H2333]]

     is amended by inserting ``minimum maturity of 5 years and a'' 
     before ``maximum maturity''.
       (b) Effective Date; Applicability.--The amendment made by 
     this section shall take effect on the date of the enactment 
     of this Act and shall apply to any loan made pursuant to 
     section 7(a)(36) of the Small Business Act (15 U.S.C. 
     636(a)(36)) on or after such date. Nothing in this Act, the 
     CARES Act (Public Law 116-136), or the Paycheck Protection 
     Program and Health Care Enhancement Act (Public Law 116-139) 
     shall be construed to prohibit lenders and borrowers from 
     mutually agreeing to modify the maturity terms of a covered 
     loan described in subparagraph (K) of such section to conform 
     with requirements of this section.

     SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PROGRAM LOAN 
                   FORGIVENESS.

       (a) Extension of Covered Period.--Section 7(a)(36)(A)(iii) 
     of the Small Business Act (15 U.S.C. 636(a)(36)(A)(iii)) is 
     amended by striking ``June 30, 2020'' and inserting 
     ``December 31, 2020''.
       (b) Forgiveness.--Section 1106 of the CARES Act (Public Law 
     116-136) is amended--
       (1) in subsection (a), by striking paragraph (3) and 
     inserting the following:
       ``(3) the term `covered period' means, subject to 
     subsection (l), the period beginning on the date of the 
     origination of a covered loan and ending the earlier of--
       ``(A) the date that is 24 weeks after such date of 
     origination; or
       ``(B) December 31, 2020;'';
       (2) in subsection (d)--
       (A) in paragraph (5)(B), by striking ``June 30, 2020'' each 
     place it appears and inserting ``December 31, 2020''; and
       (B) by adding at the end the following new paragraphs:
       ``(7) Exemption based on employee availability.--During the 
     period beginning on February 15, 2020, and ending on December 
     31, 2020, the amount of loan forgiveness under this section 
     shall be determined without regard to a proportional 
     reduction in the number of full-time equivalent employees if 
     an eligible recipient, in good faith--
       ``(A) is able to document--
       ``(i) an inability to rehire individuals who were employees 
     of the eligible recipient on February 15, 2020; and
       ``(ii) an inability to hire similarly qualified employees 
     for unfilled positions on or before December 31, 2020; or
       ``(B) is able to document an inability to return to the 
     same level of business activity as such business was 
     operating at before February 15, 2020, due to compliance with 
     requirements established or guidance issued by the Secretary 
     of Health and Human Services, the Director of the Centers for 
     Disease Control and Prevention, or the Occupational Safety 
     and Health Administration during the period beginning on 
     March 1, 2020, and ending December 31, 2020, related to the 
     maintenance of standards for sanitation, social distancing, 
     or any other worker or customer safety requirement related to 
     COVID-19.
       ``(8) Limitation on forgiveness.--To receive loan 
     forgiveness under this section, an eligible recipient shall 
     use at least 60 percent of the covered loan amount for 
     payroll costs, and may use up to 40 percent of such amount 
     for any payment of interest on any covered mortgage 
     obligation (which shall not include any prepayment of or 
     payment of principal on a covered mortgage obligation), any 
     payment on any covered rent obligation, or any covered 
     utility payment.''; and
       (3) by adding at the end the following new subsection:
       ``(l) Application to Certain Eligible Recipients.--An 
     eligible recipient that received a covered loan before the 
     date of enactment of this subsection may elect for the 
     covered period applicable to such covered loan to end on the 
     date that is 8 weeks after the date of the origination of 
     such covered loan.''.
       (c) Extension of Deferral Period.--Section 7(a)(36)(M) of 
     the Small Business Act (15 U.S.C. 636(a)(36)(M)) is amended--
       (1) in clause (ii)(II), by striking ``for a period of not 
     less than 6 months, including payment of principal, interest, 
     and fees, and not more than 1 year.'' and inserting the 
     following: ``, including payment of principal, interest, and 
     fees, until the date on which the amount of forgiveness 
     determined under section 1106 of the CARES Act is remitted to 
     the lender.'';
       (2) in clause (iii), by striking ``for a period of not less 
     than 6 months, including payment of principal, interest, and 
     fees, and not more than 1 year.'' and inserting the 
     following: ``, including payment of principal, interest, and 
     fees, until the date on which the amount of forgiveness 
     determined under section 1106 of the CARES Act is remitted to 
     the lender.''; and
       (3) by adding at the end the following new clause:
       ``(v) Rule of construction.--If an eligible recipient fails 
     to apply for forgiveness of a covered loan within 10 months 
     after the last day of the covered period defined in section 
     1106(a) of the CARES Act, such eligible recipient shall make 
     payments of principal, interest, and fees on such covered 
     loan beginning on the day that is not earlier than the date 
     that is 10 months after the last day of such covered 
     period.''.
       (d) Effective Date; Applicability.--The amendments made by 
     this section shall be effective as if included in the CARES 
     Act (Public Law 116-136) and shall apply to any loan made 
     pursuant to section 7(a)(36) of the Small Business Act (15 
     U.S.C. 636(a)(36)) or section 1109 of the CARES Act.

     SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES.

       (a) In General.--Section 2302(a) of the CARES Act (Public 
     Law 116-136) is amended by striking paragraph (3).
       (b) Effective Date; Applicability.--The amendments made by 
     this section shall be effective as if included in the CARES 
     Act (Public Law 116-136) and shall apply to any loan made 
     pursuant to section 7(a)(36) of the Small Business Act (15 
     U.S.C. 636(a)(36)) or section 1109 of the CARES Act.

     SEC. 5. EMERGENCY DESIGNATION.

       (a) In General.--This Act is designated as an emergency 
     requirement pursuant to section 4(g) of the Statutory Pay-As-
     You-Go Act of 2010 (2 U.S.C. 933(g)).
       (b) Designation in Senate.--In the Senate, this Act is 
     designated as an emergency requirement pursuant to section 
     4112(a) of H. Con. Res. 71 (115th Congress), the concurrent 
     resolution on the budget for fiscal year 2018.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the measure under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  I rise in support of the bipartisan bill before us today, H.R. 7010, 
the Paycheck Protection Program Flexibility Act of 2020.
  We all knew the rollout of the Paycheck Protection Program was going 
to be rocky, given the size of the program and the speed with which it 
was stood up.
  We are thankful for the staff at SBA for their hard work assisting 
small businesses during this dire time. This is, undoubtedly, the most 
enormous undertaking the agency has ever performed. They have done so 
under difficult circumstances and remarkably quickly.
  With that said, my colleagues and I have been hearing from Main 
Street small businesses that they need changes to make the program work 
for them.
  I think we can all agree the economic crisis brought on by COVID-19 
has proven more severe and drawn out than many anticipated. In some 
cases, State and local governments have extended shutdowns and stay-at-
home orders. Many localities are only now allowing small businesses to 
reopen, very gradually, in phases.
  In other instances, small business owners have reported concerns that 
the economy will not fully recover until there is an affordable, widely 
accessible COVID-19 vaccine.
  Regardless, the extended nature of the economic downturn has made it 
necessary to enact certain legislative reforms to the program.
  First, we need to give borrowers more than 8 weeks to use the funds 
in order to qualify for loan forgiveness. Borrowers who took out PPP 
loans early in the program are about to reach the end of their 8-week 
period governing forgiveness. However, millions of small businesses 
across the Nation are still facing forced closures.
  Those that are reopening are required to do so in an extremely 
limited manner, with only outdoor dining or curbside-only pickup at 
retail stores. Those restrictions mean small businesses continue to 
have a tough road ahead, and they need flexibility in how they use this 
emergency capital. This provision will give them that.
  The bill triples the current 8-week period in which businesses must 
use funds to be eligible for forgiveness to 24 weeks. That will help 
ensure businesses have more room to breathe, even in places where 
reopening of the economy happens more slowly.
  Second, we must extend the program through the end of the year. The 
unpredictable spread of the virus, shortage of widespread testing, and 
lack of a vaccine mean that we do not know exactly when the small 
business sector will fully reopen and, when it does, how the ``new 
normal'' will look.
  The bill addresses a challenge that was created when the first set of 
guidelines were issued. We have heard you

[[Page H2334]]

loud and clear. Today's legislation strikes a balance between 
protecting workers by guaranteeing loans are used for payroll, with the 
need to recognize that many independent restaurants face difficulty 
paying rent and utilities.
  The new 60/40 ratio makes certain a business can remain open, weather 
the crisis, continue employing workers, and keep serving their local 
communities. Congress must revamp this program to make it more 
accessible for small employers to weather the uncertainty ahead.
  We simply do not know if there will be another wave of infections or 
additional lockdowns. This bill provides certainty to employers afraid 
to use their loan proceeds or reluctant to apply to the program by 
providing much-needed flexibility.
  I applaud my colleagues, Mr. Phillips and Mr. Roy, for working 
together in a bipartisan manner to craft commonsense solutions for 
America's small businesses. I thank Ranking Member Chabot for his 
assistance in crafting this bipartisan measure.
  I urge all my colleagues to vote ``yes,'' and I reserve the balance 
of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Unlike the previous bill, I am happy to say that I agree with the 
chairwoman, and I rise in strong support of H.R. 7010, the Paycheck 
Protection Program Flexibility Act of 2020, as amended.
  I would, again, like to thank Chairwoman Velazquez for conducting 
this process in such a bipartisan manner. It is more important than 
ever to maintain our strong bilateral negotiations as we continue to 
combat the spread of COVID-19 and its devastating, absolutely 
devastating, effect on our economy, especially our small businesses in 
that economy.
  Over the past 3 months, I have been in contact with literally 
thousands of small businesses, not only in my hometown of Cincinnati, 
but across the country. I have joined dozens of conference calls with 
my congressional colleagues and with their constituents and mine all 
the way from the State of Washington to the State of Florida, and just 
about everywhere in between.
  There has been broad consensus during those interactions that the PPP 
program has served as a lifeline for small businesses and their 
employees, many of whom have been shut down through no fault of their 
own.
  By and large, it would be hard to argue against the fact that the PPP 
program has, for the most part, been successful. Over 4 million small 
businesses have received a PPP loan thus far, allowing them to hang on 
as the COVID-19 pandemic spread across our Nation.

  Of course, there have been some shortcomings, some unintended 
consequences. That will happen when you do 6 months of legislative work 
in 6 days. That is why we are here today, to fix some of the unintended 
consequences.
  For example, when we crafted the original CARES Act back in March, 
the covered period was defined as 8 weeks. The true emergency period 
has evolved over time. This bill begins to address that.
  To fix the miscalculation in how long this pandemic would last, this 
bill extends the 8-week original covered period to 24 weeks and creates 
an option allowing businesses that want to stay within the original 8-
week window to do so. This promotes greater flexibility for small 
businesses to decide when it is best to start spending their PPP loan.
  It is important to remember that this change isn't as simple as 
moving a few dates around. There are a lot of unintended consequences 
that we need to account for because more than 4 million loans have 
already gone through the program in the amount of half a trillion 
dollars.
  First, the original CARES Act allows principal, interest, and fees to 
be deferred for between 6 and 12 months. The administration adjusted 
this deferment period to just 6 months through guidance.
  This deferment time period needed to be shifted to ensure a business 
knows its loan forgiveness amount before its deferment period 
concludes. This bill accomplishes that by extending the deferment 
window to end once the SBA makes the forgiveness payment to the lender 
on the borrower's behalf.
  Second, the bill amends the 75/25 rule which was inserted into the 
PPP by the administration through guidance to require 75 percent of the 
loan to be used on payroll costs and 25 percent to be used on mortgage 
interest, rent, and utilities. So that is what the previous rule called 
for, 75/25.
  This bill replaced that with a 60/40 split to, again, give small 
businesses greater flexibility as to how to best utilize their PPP 
funds.
  Third, the bill extends the 2-year maturity of the loan to a 5-year 
maturity for new loans to help small businesses struggling to make 
their payments in a weakened economy. Loans already processed remain at 
the 2-year maturity rate so that there is no retroactivity in this 
provision.
  The bill makes clear that small businesses and lenders are free to 
negotiate modifications in the maturity terms if they both agree. 
Again, both have to agree, both the borrower or the small business and 
the lender.
  Fourth, the bill allows businesses that receive PPP loan forgiveness 
to also receive their employer payroll tax deferment.
  And that was a big issue. Many of the small businesses were concerned 
that they were losing one of the advantages that was in the original 
PPP program in the CARES Act. So this is back in. They will be able to 
take that business deduction from their taxes.
  Fifth, the bill also codifies the rehire flexibility provision. So as 
long as a good-faith offer to return to work is provided to a recently 
laid off worker, the business will satisfy the head count requirements.
  This safe harbor provision attempts to address the challenges many 
small businesses have had getting some employees to return to work with 
the $600 Federal unemployment check per week on top of the State 
unemployment checks which they are also receiving.
  Finally, the bill establishes a new safe harbor to account for 
businesses that are required by civil authority to open only at 50 
percent capacity. This ensures that businesses that have no choice but 
to run at half capacity are not left behind by their counterparts who 
have the ability to operate fully. So it is a fairness issue.
  Mr. Speaker, I urge my colleagues to support this much-needed 
bipartisan bill that provides real solutions to American small 
businesses facing this very difficult situation.

                              {time}  1015

  Mr. Speaker, I again want to thank the chairwoman for working on this 
on a bipartisan basis.
  This flexibility allows America's small businesses to go a long way 
to addressing many of the concerns that we heard time and time again 
from small businesses all across the country. They need to have the 
flexibility to spend the money most efficiently so that the businesses 
can actually stay afloat, make it through this pandemic, and, most 
importantly, be able to keep as many of their employees on the payroll 
so that they are able to support their families as possible.
  Mr. Speaker, I strongly urge my colleagues to support this 
legislation on both sides of the aisle, and I reserve the balance of my 
time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 4 minutes to the gentleman from 
Minnesota (Mr. Phillips).
  Mr. PHILLIPS. Mr. Speaker, I thank Representative Velazquez; Ranking 
Member Chabot; my colleague, Mr. Roy from Texas, who has spent a lot of 
time in the political foxhole with me from the very beginning of this 
initiative; and all who have helped get the Paycheck Protection Program 
Flexibility Act to the floor.
  But I want to spend my time today letting my constituents speak for 
themselves. For more than 43 years, Minnesotans have celebrated 
birthdays and Little League wins over burgers and cheese curds at Lions 
Tap, a family-owned restaurant in Eden Prairie, Minnesota, until COVID-
19 changed everything. My team spoke with Bert, owner of Lions Tap, and 
when we asked for feedback about his experience with the Payroll 
Protection Program, he said this: ``We definitely need the PPP. The 
problem is that because our business is a restaurant, we are not able 
to open it up fully where we could hire our entire staff back under the 
conditions of the loan. It is imperative that

[[Page H2335]]

we are allowed forgiveness for expenses beyond the original 8-week 
period. We also need to loosen up the restrictions of nonpayroll 
expenses beyond the 25 percent. The complexities of balancing staying 
open or closing will be determined by what the government will be able 
to change on the PPP in this bill.''
  Bert is not alone. On a Zoom call last month, a barber who rents a 
chair in a Brooklyn Park barber salon told me exactly the same thing. I 
also talked with Mike, who owns a few hotels in Minnesota and is being 
forced to make lose-lose decisions about how to pay his employees and 
his mortgage while their rooms sit empty.
  Mike said this: ``The government stepped in with the Paycheck 
Protection Program, but it was a one-size-fits-all approach that didn't 
really help industries like hospitality. We could pay our employees but 
not our mortgages. The Paycheck Protection Flexibility Act will do for 
small businesses what the PPP could not.''
  John from Maple Grove, who owns a handful of beloved wood-fired pizza 
joints in Minnesota, is also feeling the heat from a lengthening 
crisis. He told me: ``We are very appreciative of the PPP loan we 
received but would have no way to qualify for any material forgiveness 
given the impossibility of rehiring our entire workforce while our 
stores are closed. If the loan is not forgiven, we do not foresee our 
business returning to any meaningful positive cash flow until a vaccine 
is developed or the virus impact weakens and would likely not have 
funds to repay any loan principal in that time.''
  Justin, who has a small gym in Chanhassen, and Ryan, who owns 
Frenchies nail salon, are reporting the exact same problems. The 
outpouring of feedback has been as clear as it has been enormous.
  Mr. Speaker, today is not about us. It is not about which side 
secures the biggest win or who gets the credit. It is about delivering 
the relief that small business owners across Minnesota and this Nation 
are asking for. It is about doing our job.
  At its core, representation begins with listening, and these stories 
paint a very clear picture. Our small business owners, the institutions 
of our Main Streets and the glue of our communities, are asking us to 
take action to solve problems and to engage in some good old-fashioned 
teamwork.
  I am grateful to my colleague, Mr. Chip Roy from Texas, for joining 
me in that very spirit as the coauthor of this bill and to the growing 
coalition of support that we built around the Paycheck Protection 
Flexibility Act. This bill will help people in the ways that they need, 
and we have not a moment to lose.
  Mr. Speaker, if you don't want to take my word for it, just listen to 
the millions of our country's shopkeepers, innovators, entrepreneurs, 
and small business owners all around the country. Or listen to our 11 
million restaurant employees. Or just take it from Bert, the owner of 
Lions Tap, who said that the heartbeat of America is small business, 
and we need your help to survive.
  Mr. CHABOT. Mr. Speaker, I want to commend and thank the gentleman 
from Texas (Mr. Roy) and the gentleman from Minnesota (Mr. Phillips) 
for working together in a bipartisan manner on this legislation.
  Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Roy).
  Mr. ROY. Mr. Speaker, I thank the chairwoman and the ranking member 
for their leadership. I really want to give a strong statement of 
support and thanks to my colleague, Dean Phillips, for the way in which 
our offices have worked together and in which he and I have worked 
together on this. I have nothing but positive things to say about him, 
and I look forward to working on other measures to get, frankly, this 
body back to the work of the American people and to make Congress work 
again, to use a phrase that might be interesting. But we need to make 
Congress work again for the American people.
  This is a simple bill. It is a seven-page bill. We need more of that, 
more single-subject bills that we can wrap our hands around and move 
through the Chamber in ways that will impact American people's lives 
without things being decided by a handful of people in back rooms that 
cost trillions of dollars and have 2,000 and 3,000 pages.
  That is a statement, frankly, on both sides of the aisle. We need to 
find a way to work together, to have simple approaches to do the work 
of the American people.

  This piece of legislation, in particular, is important to me because 
I represent about 2,300 restaurants and about 53,000 employees who work 
there in central Texas. It is the most in Texas. It has to be pretty 
high up nationwide. Austin, Texas, and San Antonio, Texas, both have a 
great number of live music venues, as they are famously known, and my 
wife and I have availed ourselves of them over our lives.
  In fact, my courtship of my wife began in a lot of these places. Our 
first date was at Stubb's Bar-B-Q in Austin, Texas, a great institution 
for a Willie Nelson concert. We were at Threadgill's for our rehearsal 
dinner in South Austin, Texas, with live music.
  I represent the Broken Spoke. I represent Luckenbach, Texas, if you 
remember the famous song. I represent a number of great restaurants in 
San Antonio. The Cortez family has a bunch of restaurants in San 
Antonio. Many of you, if you have been on the River Walk or have been 
in downtown San Antonio, would have experienced these places. They are 
a part of the culture of our lives, our fabric of what we do every day 
when we visit with our families and our communities.
  We need to save these great institutions and not just restaurants. I 
am talking about the barbershops, the hair salons, the live music 
venues, and the hotels that are struggling.
  I just talked to a hotel operator an hour ago, just before coming 
down here to the floor, who is struggling and said: Look, I can't make 
it 8 weeks. I can't stay alive. I don't have enough heads on the 
pillows. We are working toward reopening.
  These are real businesses with real employees and real lives tied up 
into this who are struggling.
  The thing is, the PPP program has been a great success in getting 
$650 billion out the door in a matter of weeks to help almost 4 million 
businesses, as has been noted on the floor, and that is awesome. That 
is fantastic. We should be proud of that. But as we work to get America 
open again, we have to be mindful of the fact that times are continuing 
to move on. These businesses are struggling, and they can't meet some 
of these restrictions and deadlines.
  I will note a little moment of partisanship perhaps, in that I 
believe the unemployment insurance provision that was adopted is 
actually the root of the problem because you can't pay people more not 
to work than to work and then expect businesses to go back and rehire 
people to meet the requirements we put in the bill to meet and hold 
people in employment in the businesses. We need to address that. I hope 
that as a body we will not extend that when it expires in July. This is 
something I think is fundamentally important.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. CHABOT. Mr. Speaker, I yield the gentleman from Texas an 
additional 30 seconds.
  Mr. ROY. Mr. Speaker, one thing I want to point out here is that the 
ranking member and the chair have gone through the provisions in the 
bill. This is an important vote because we have to do this to help 
small businesses, but it is an important vote because I think it gets 
back to the heart of simple legislating and working together to 
accomplish things.
  Let's provide the flexibility for businesses. Let's make sure that we 
let America open. But let's work together to solve the problems of the 
American people together, like Mr. Phillips and I did. I am proud to 
cosponsor this with him.
  Mr. Speaker, I hope the Senate will take this up and move it 
expeditiously so that we can help businesses this week. There is no 
reason to delay that.
  Ms. VELAZQUEZ. Mr. Speaker, I would like to inquire of the Chair how 
much time is remaining on each side.
  The SPEAKER pro tempore. The gentlewoman from New York has 11\1/2\ 
minutes remaining. The gentleman from Ohio has 10 minutes remaining.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from 
New Hampshire (Mr. Pappas).
  Mr. PAPPAS. Mr. Speaker, I thank the chairwoman for yielding.

[[Page H2336]]

  Mr. Speaker, while the Paycheck Protection Program has provided a 
lifeline to small businesses, fundamental changes must be made to meet 
the ongoing needs of our Main Street economy.
  I am thankful to have heard from hundreds of local business leaders 
in my district who have helped identify critical shortcomings in the 
PPP.
  RoseAnn in Laconia tells us her restaurant's sales are down 90 
percent, and she needs more time than 8 weeks to ramp up safely.
  David from Portsmouth says his overhead costs are much higher than 
the payroll at his new business, and he needs more flexibility in how 
he can spend down the loan.
  Hillary from Goffstown won't begin to make up for lost sales in her 
wedding business until next year. A longer term will give her a more 
stable financial footing.
  There are millions of stories like these across the country.
  I want to thank my colleagues for coming together on a bipartisan 
basis to understand the need that is out there and helping to meet it 
with this comprehensive bill that is going to provide a lifeline to our 
local businesses. The fixes in this Paycheck Protection Flexibility Act 
will allow our small businesses and their dedicated employees to 
continue to survive. Let's pass this bipartisan bill today for our 
workers, for our small businesses, and certainly for our future.
  Mr. CHABOT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan (Mr. Upton).
  Mr. UPTON. Mr. Speaker, I want to particularly thank Mr. Phillips and 
Mr. Roy for working together on this important legislation.
  When the President signed the Paycheck Protection Program nearly 2 
months ago, it provided a real lifeline to our small businesses, 
without a doubt. We have had some pretty rough seas, a typhoon. But at 
the end of the day, after 8 weeks, Mr. Speaker, if you were a 
small business and you allocated 75 percent of the money that you 
received as that loan for employees' salaries, healthcare, et cetera, 
that loan would become a grant; and the response was overwhelming. A 
$250 billion program was exhausted after 10 days.

  After we came back and did another job, we doubled down. We gave it 
another $310 billion on top of that. Unbelievable.
  As much as all of us wanted this nightmare to end by Easter, we are 
now past Memorial Day, and those small businesses are still not open. 
Many of them are still shuttered, and they can't possibly meet that 75 
percent standard that their lender, their community bank, or their 
credit union offered them to be able to convert that loan to a grant.
  So, without the changes in this bipartisan bill, that program instead 
will be an anchor that will take them down to the very bottom. We can't 
let that happen, no way.
  The bipartisan Problem Solvers Caucus endorsed this flexibility bill. 
It is one that we need to get done. I hope that the Senate can take 
what we do today and pass it before the end of the week. We need to 
provide that relief to our small businesses and the millions of 
employees that it impacts.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from 
Colorado (Mr. Neguse).
  Mr. NEGUSE. Mr. Speaker, I rise today in support of the bills before 
the House.
  In Colorado, our small businesses are struggling under these 
unprecedented economic circumstances. From the mom-and-pop taverns in 
Gilpin County and Winter Park; the restaurants in Loveland, Fort 
Collins, and Boulder; Main Street businesses in Nederland and 
Breckenridge; and the many Colorado businesses that rely on outdoor 
recreation and ski season, in particular, they never could have planned 
for this pandemic. We cannot expect them to weather this crisis alone.
  The Payroll Protection Program has provided critical funds to keep 
many of these businesses afloat and workers employed. But as we have 
heard from both sides of the aisle today, many fixes are needed, and 
that is what we are here today to do.
  We must ensure that loan forgiveness periods are extended so that 
small businesses are not on the hook for this money while their doors 
remain shut. We must extend the program past June 30 as so many of our 
businesses face increased uncertainty and as our country faces 
uncertainty about what the future holds in the coming months. We must 
expand access and transparency and prioritize our veteran-owned and 
economically disadvantaged businesses.
  At the end of the day, we must continue to support our local small 
businesses because they are the lifeblood of our communities, for the 
sake of our families, our local economies, and our future.
  Mr. Speaker, I thank the chairwoman for her strong leadership over 
the course of this pandemic and my freshman colleague, Representative 
Phillips, for his leadership in bringing this bill forward. I am proud 
to support it. Let's get this done for small businesses in Colorado and 
across America.

                              {time}  1030

  Mr. CHABOT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Louisiana (Mr. Graves).
  Mr. GRAVES of Louisiana. Mr. Speaker, I thank the gentleman from Ohio 
(Mr. Chabot) for his hard work; and I thank the chairwoman, as well, 
for working together in a bipartisan manner.
  But most importantly, I thank the gentleman from Texas (Mr. Roy), my 
friend, for working together, for identifying the problems with the 
Paycheck Protection Program, in helping to perfect this program that is 
an incredible lifeline to small businesses and, importantly, Mr. 
Speaker, to the employees.
  Millions and millions of businesses, billions of dollars in loans in 
a program that didn't even exist. Within 1 week, they stood this 
program up, and within 2 weeks, Mr. Speaker, handed out more money than 
the SBA had done over the previous 14 years. It is absolutely 
remarkable what Treasury and SBA have done with this program.
  And, as I said, the work that Mr. Roy and Mr. Phillips have done to 
come together on a bipartisan basis to help to fix, to provide 
flexibility to businesses, to give them more time, to give them more 
flexibility on the use of funds, to ensure that these businesses aren't 
just open for 8 weeks but are truly sustainable businesses that can 
continue providing employment to millions and millions of Americans for 
years to come.
  Now, Mr. Speaker, I want to pivot. The other legislation, the TRUTH 
Act, Mr. Speaker, looking at the comparison of numbers, here we are 
giving out billions of dollars and millions of loans, looking at the 
Economic Injury Disaster Loan Program, the EIDL loan program. This 
program is a complete disaster itself. The program is not getting money 
out the door. Whoever is running this program needs to be replaced.
  Look at the statistics. They brought in an outside contractor to do 
the advances. The advances are taking off, but the loans, themselves, 
are not. We are not offering operating expenses and other needed loans 
to these small businesses.
  This bill doesn't fix a single problem that is out there that is 
delaying, that is preventing this program from actually providing 
operating expense assistance to these small businesses.
  Mr. Speaker, this bill is a complete whiff. I urge that we pull back 
the TRUTH Act. Rescind it. Let's sit back down again and work together 
on a bipartisan basis, as we have done on this bill, on the PPP Flex 
bill, and provide true solutions to where the Economic Injury Disaster 
Loan Program can help these small businesses, can truly provide a hand 
up.
  Mr. Speaker, I urge rejection of that bill.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 1 minute to the gentleman from 
New Jersey (Mr. Gottheimer).
  Mr. GOTTHEIMER. Mr. Speaker, I thank the chairwoman for her excellent 
leadership. I thank Mr. Roy for his great bipartisan work and my dear 
friend, colleague, and fellow problem solver, Dean Phillips, for his 
remarkable leadership on this important piece of legislation. He did it 
the way he believes we all should govern, and that is working across 
the aisle. I am grateful for what he did on the Paycheck Protection 
Flexibility Act, which was supported by the Problem Solvers Caucus, 50 
strong--25 Democrats and 25 Republicans.

[[Page H2337]]

  Mr. Speaker, I have heard over and over again from businesses in my 
community in northern New Jersey that they are so grateful for the PPP 
Loan Forgiveness Program and all of the jobs and businesses it helps 
protect. But they need more flexibility with the formula and timeframe. 
They need more time with the loan and more flexibility on how to spend 
it, from salaries to rent.
  Mr. Speaker, I am proud that this bipartisan legislation does exactly 
that: helps the 131,000 small businesses in New Jersey that have been 
helped by the PPP Loan Forgiveness Program.
  And I am equally grateful for the bipartisan TRUTH Act, which demands 
more transparency and accountability for every single dollar that is 
loaned out from the Small Business Administration to our businesses. I 
am glad that that legislation will pass here later today and that we 
will know where all the loans have gone.
  Mr. Speaker, New Jersey's economy, including all of our small 
businesses, want to make sure their businesses can stay open at the end 
of this pandemic. They want to keep their workers. They want to keep 
giving back to our communities. They want to grow their businesses and 
give back to our great State. But they need our help. This bill does 
that, and I am hoping the Senate acts quickly to take it up.
  Mr. CHABOT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Tennessee (Mr. Burchett), a very important member of the Committee on 
Small Business.
  Mr. BURCHETT. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, I rise today to encourage my colleagues to vote in favor 
of the H.R. 7010, the Paycheck Protection Program Flexibility Act.
  America's economic recovery from the coronavirus pandemic depends on 
getting individuals comfortable with safely going back to workplaces, 
shops, and restaurants. H.R. 7010 represents a continued commitment to 
providing economic assistance to America's small businesses while our 
economy works towards this goal.
  Throughout east Tennessee, the Paycheck Protection Program is 
ensuring employers can pay their workers and cover operating expenses. 
H.R. 7010 will allow greater flexibility for this relief by extending 
the PPP loan forgiveness period from 8 to 24 weeks, eliminating 
duplicative program requirements, and providing small businesses with 
additional time to pay back loans as they get back on their feet.
  Members of the Committee on Small Business have a strong reputation 
of reaching across the aisle to work together, and I applaud the 
efforts of Mr. Roy and Mr. Phillips to craft clean legislation that 
meets the needs of small businesses.
  Mr. Speaker, I am proud to support this bill that delivers results 
for America's small businesses during this difficult time. It is great 
to see Chairwoman Velazquez and the ranking member, and I thank them 
for their leadership.

  Ms. VELAZQUEZ. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson Lee).
  Ms. JACKSON LEE. Mr. Speaker, I thank the chairwoman for her 
leadership with the ranking member, Mr. Phillips and Mr. Roy.
  Mr. Speaker, I stand in strong support because 100,000 people are 
dead. Small businesses are living in the midst of those communities of 
devastation, but they are trying to keep their doors open so they can 
help their fellow citizens.
  I am grateful that we will allow an extended period of time, 24 
weeks, for allowing for forgiveness. I am very grateful we have 
extended the date, for extending the program to December 31, and, of 
course, the payment, the loan period to 5 years.
  I know the mom-and-pop barbershops and cosmetology shops and nail 
shops and restaurants; they are crying out to survive. Some of their 
very workers have died. They are taking care of families. And so to 
ensure the full access to payroll tax deferment for business tax, that 
takes PPP loans.
  In addition, I support the TRUTH Act because the money that we give 
must be used right, and transparency on who gets the loans is 
important.
  Mr. Speaker, this further relief for small businesses is well placed 
because they are the anchor of the economy.
  I say to Houston small businesses: We are coming to help you. We will 
be speaking to you this week.
  Mr. Speaker, I support this bill, and we should move this forward as 
quickly as possible. They are the anchor of the economy of this Nation.
  Mr. CHABOT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Meuser).
  Mr. MEUSER. Mr. Speaker, I thank the gentleman from Ohio very much.
  Mr. Speaker, the Paycheck Protection Program, as we have been 
hearing, has provided critical support to small businesses across the 
country during this crisis.
  The intent of the PPP was to prevent layoffs, maintain certainty for 
workers, and help businesses weather the challenges posed by the 
coronavirus pandemic. Thanks to President Trump's Treasury Department 
and other leaders in this body, whom I commend, the program's results 
were in line with the program's intent.
  Thanks, as well, to the SBA and many community banks. Over 4.5 
million small businesses have been approved for loans through the PPP, 
and over $600 billion in loans have been processed.
  The PPP has administered over 155,000 loans, totaling $25 billion in 
Pennsylvania alone. Nationwide, nearly 65 percent of these loans have 
been under $50,000--remarkable to see results of a bill in line with 
its intent.
  However, we all do know--and we have been hearing from our 
constituents--that many businesses have not been able to reopen or 
access the loans amidst many various State government-mandated 
shutdowns, so additional time and flexibility to use the PPP funds will 
help them meet payroll and remain in operation as we safely and 
responsibly reopen our economy.
  Today's Paycheck Protection Program Flexibility Act will enact 
effective reforms which were created with input from small businesses. 
Again, I strongly commend the bill's sponsors for engaging in this way.
  Mr. Speaker, families are the heart of our communities. Small 
businesses are the backbones of our economy. Our families and our small 
businesses, with our support, will make it through this crisis and 
drive the next great American comeback.
  Mr. Speaker, I strongly urge a ``yes'' vote on this very important 
bill.
  Mr. CHABOT. Mr. Speaker, may I inquire how much time is remaining.
  The SPEAKER pro tempore. The gentleman from Ohio has 3 minutes 
remaining.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank the gentlewoman from New York (Ms. Velazquez) 
for her cooperation and Mr. Roy and Mr. Phillips, as well, for working 
together in a bipartisan manner on this important legislation.
  COVID-19, the coronavirus, has had a tremendous impact, an adverse 
impact on our Nation, particularly on our Nation's economy, 
particularly on America's small businesses. Many of them, 
unfortunately, have had to shut down during this time.
  When we originally passed the CARES Act, which included the Paycheck 
Protection Program--or now it has become so popular, now it is PPP. It 
is known by that by millions of small businesses all across the 
country.
  We didn't know exactly how long the pandemic would last. We still 
don't know, for that matter. So 8 weeks, for example, was the period of 
time that determined the payouts and whether the loan would be forgiven 
or not, whether in fact it would be a grant, whether these small 
businesses would have to pay it back.
  As it turned out, 8 weeks, alone, isn't a sufficient period of time 
for many small businesses. This legislation extends that to 24 weeks, 
at the option of the borrower. So this will allow many small businesses 
all across the country to see what benefits them the most so they can 
survive, so they can keep their employees employed so they can support 
their families. So that is an important item that is in this 
legislation.
  In addition, changing the 75/25 rule to 60/40, again, is going to 
give these businesses the flexibility that they need.
  How long do small businesses have to pay it back? Well, those who 
have already taken out the loans, 2 years. For new loans taken out from 
here on--and there is over $100 billion left in the

[[Page H2338]]

fund, so there will be many small businesses that still get loans--the 
period will be 24 weeks. Now, by the time the Senate gets ahold of 
this, it is always possible that that may be compromised, but at this 
point, it is 24 weeks in this particular piece of legislation.

  But I think one of the important things to remember is that the 
borrower and the lender can get together and mutually agree, if they 
want to agree, if they don't necessarily fall into the two categories 
that I just mentioned. So there is some flexibility for them to 
negotiate there as well. And there are other items, as we have already 
discussed.
  But the important thing is this will give America's small businesses 
the flexibility to ensure that they at least have a chance to survive. 
And I know in my district in Cincinnati, and districts all over the 
country, their very survival is at issue here.
  The PPP program--and it is a lot of money, as was mentioned: $350 
billion and another $310 billion, so around $660 billion in this 
program going out all over the country to these small businesses that 
are the backbone of the American economy. About half the people who 
work in America work for one of these small businesses. So this will 
help them to survive.
  Thank goodness the House of Representatives was able to work together 
in a bipartisan manner to come to this point today where this 
legislation will likely pass in a few minutes.
  Mr. Speaker, I again thank the chairwoman, and I yield back the 
balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I continuously hear from small businesses across the 
country about the uncertainty they are facing and when they will be 
able to fully reopen. In the face of that uncertainty, small businesses 
need flexibility with these loans.
  This bill takes an important step in providing that flexibility and 
making the Paycheck Protection Program work better for the millions of 
small businesses across the country that are trying to weather this 
storm. And since we do not know how long this storm will last, we must 
ensure small businesses are able to take advantage of the program 
through the end of the calendar year and to use the loan over the 
course of 24 weeks. This program is now a stronger onramp to full 
employment for small employers to weather this unprecedented economic 
and public health crisis.
  I commend the Committee on Small Business staff on both sides of the 
aisle for their dedication and hard work over these last few months. I 
thank them for their commitment to our Nation's small employers and 
their workers.
  And I thank the ranking member, because we have always, throughout 
the history of the committee, worked in a bipartisan manner. I always 
say, when we deal with small business issues, there is no Democratic or 
Republican approach. Those are American issues, particularly as they 
relate to our economy.
  Mr. Speaker, in that vein, I also thank the gentleman from Texas (Mr. 
Roy) and the gentleman from Minnesota (Mr. Phillips) for the great work 
that they did and for the bipartisan spirit in which they brought this 
bill to the floor.
  Mr. Speaker, I strongly urge a vote in support of the legislation, 
and I yield back the balance of my time.
  Mr. NADLER. Mr. Speaker, I rise today in support of this legislation 
to provide a critical source of aid to small businesses and nonprofits 
during the COVID-19 pandemic. While the Paycheck Protection Program was 
established as an eight-week program, it was clear from the start that 
the economic impact of the pandemic would last far longer. I am proud 
that the House addressed this issue by expanding the covered period to 
24 weeks in the Heroes Act earlier this month, and I am glad this bill 
also includes a 24-week extension. The extended timeline will give 
borrowers the flexibility to spread out the loan proceeds over the full 
course of the crisis, and in a manner that is best for their small 
business or nonprofit.
  The legislation also takes action to change the harmful ``75/25'' 
percent rule that the Small Business Administration established to 
limit the use of Paycheck Protection Program loan proceeds for 
nonpayroll expenses to 25 percent. While increasing the current 
limitation on the use of loan proceeds for nonpayroll expenses from 25 
percent to 40 percent will allow many small businesses to apply for the 
program, I am disappointed that this legislation falls short of the 
Heroes Act and fails to eliminate the rule. Congress intended for the 
Paycheck Protection Program to be a critical resource for all small 
businesses impacted by the pandemic. We must make sure that the program 
will be there and workable for microbusinesses in high rent areas like 
New York City. Microbusinesses--such as ``mom and pop'' shops and 
corner stores--are the lifeblood of our communities. I will continue 
working to ensure that the small business assistance programs created 
in the CARES Act are accessible and viable for the most vulnerable 
small businesses.
  I am also disappointed that this legislation was amended to remove 
language to retroactively establish a five-year minimum maturity on 
Paycheck Protection Program loans for amounts not forgiven. While the 
CARES Act allowed a maximum maturity of up to ten years from when the 
borrower applied for the loan, the Small Business Administration 
limited the minimum maturity of the loans to two years just hours 
before financial institutions began accepting Paycheck Protection 
Program loans. To address this issue, the Heroes Act established a 
minimum maturity on PPP loans of five years to enable borrowers to 
amortize loans over a longer period of time, decreasing their monthly 
payments on any portion that is not forgiven. While this legislation 
also establishes a five-year minimum maturity on Paycheck Protection 
Program loans, it fails to make the change retroactive for the millions 
that have already received their loans. I will continue to call for the 
minimum maturity on Paycheck Protection Program loans to be extended 
for all Paycheck Protection Program borrowers.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 7010, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. VELAZQUEZ. Mr. Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3 of House Resolution 
965, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this question 
will be postponed.

                          ____________________