[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.
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