Congressman Neguse Helps Secure Changes for PPP to Support Colorado Small Businesses
Washington D.C.—Today Congressman Joe Neguse helped secure passage in the U.S. House of Representatives of needed changes to the Payroll Protection Program. The bipartisan PPP Flexibility Act would increase flexibility and access to PPP loans by extending the program and loan forgiveness periods and loosening restrictions to allow for more small businesses to access the program.
“Small businesses from Larimer County to Summit County are hurting at the hands of this pandemic. While PPP has provided critical funding to keep businesses afloat and workers employed, fixes are needed,” said Congressman Joe Neguse. “For the past few months I have worked closely with our Mayors and small business owners to understand the needs of each of our communities. The bipartisan bill passed today will provide greater access to ensure small businesses throughout Colorado can benefit from PPP and weather this crisis.”
See Congressman Neguse’s remarks on the House floor here.
Since the beginning of the outbreak, Congressman Neguse and his staff have been in consistent communication with small businesses throughout the district, helping them to access programs available to them and soliciting feedback for aspects of the program not working as planned. Congressman Neguse has held three virtual town halls with small business owners in the district to answer questions and provide resources.
“The energy that Congressman Neguse has been put forth on behalf of our business community has been tremendous,” said Breckenridge Mayor Eric Mamula. “As the mayor of a small mountain town, I feel that Joe has given me a voice in support of the shops, restaurants and lodging at the federal level. The success of the PPP Flexibility Act will save many of the small businesses that make our town special. I am concerned that without these measures, small/independent businesses will be replaced by large chains and hospitality groups…..truly stealing the soul of our town.”
"Without business interruption insurance as an option for financial relief, PPP loans have given our small business owners a fighting chance," said Winter Park Mayor Nick Kutrumbos. "However, due to our country's dynamic state by state closures, the terms of the PPP loans must be flexible, and ultimately converted to grants. Simply put, we cannot expect our business owners to carry 100% of their operating costs, while local governments impose ever-changing safety measures limiting their revenues."
The bipartisan PPP Flexibility Act, which reflects the needs of vulnerable small businesses on Main Street, will increase flexibility and access to PPP loans including by:
- Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- Increasing the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
- Extending the program from June 30 to December 31;
- Eliminating 2-year loan repayment restrictions for future borrowers; and
- Ensuring full access to payroll tax deferment for businesses that take PPP loans.
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