Leahy, Romney introduce bill to extend PPP loan deadline from 8 to 16 weeks

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Leahy, Romney introduce bill to extend PPP loan deadline from 8 to 16 weeks

Fri, 05/15/2020 - 10:21am -- tim

Vermont Business Magazine US Senators Joe Manchin (D-WV), Mitt Romney (R-UT), Patrick Leahy (D-VT), Cory Gardner (R-CO), and Ron Wyden (D-OR) have introduced the Paycheck Protection Program (PPP) Deadline Extension Adjustment for Loans (DEAL) Act. The PPP DEAL Act will extend the loan forgiveness period from 8 to 16 weeks and amend the rehire date from June 30th to 16 weeks after the PPP loan is awarded. Additional information on the PPP DEAL Act can be found here.

“Small businesses across the country have borne the brunt of this medical crisis. While the PPP loans have been a useful resource for many small businesses, there is no way many of these small businesses can use this funding in 8 weeks and rehire everyone by June 30th. These arbitrary deadlines are causing stress for our mom and pop shops that aren’t able to get their businesses back in full swing due to the different state reopening dates across the country,” said Senator Manchin. “Businesses like the Fort Hill Child Development Center in Charleston, West Virginia have recently reopened their doors but may not be able to bring back all their employees by the June 30th deadline because the ongoing medical crisis has and will continue to keep many of their children at home. Extending the forgiveness period and the rehire date deadline will give West Virginia businesses a fighting chance to get their feet under them and bring back their employees in a reasonable timeframe. The PPP DEAL Act is commonsense, bipartisan legislation, and I look forward to continuing to work with my colleagues on both sides of the aisle to pass this legislation and help our businesses in need during this pandemic.”

“For many of Utah’s small businesses, the 8-week period they are allowed to use their PPP loan is quickly approaching, but they remain closed or far from full capacity as our economy remains paused to fight the spread of COVID-19,” Senator Romney said. “Our legislation doubles the amount of time business have to use their loan, which will help provide the flexibility they need to reopen and rehire their employees without risking their eligibility for loan forgiveness.”

“As states like Vermont slowly, and safely, reopen their economies, it’s clear that we need to lengthen the runway for businesses to be able to take full advantage of federal assistance. Vermont business owners have said loudly and clearly that they need flexibility with their PPP loans. By offering a longer window for the PPP forgiveness period as they ramp up operations, this remedy responds directly to one of their primary needs,” said Senator Leahy.

“My conversations with small business owners, farmers, and non-profit directors across Colorado have made clear that the Paycheck Protection Program is an essential lifeline. Small businesses in Colorado have received more than $10 billion in assistance from the PPP to keep the lights on and workers on payroll, but we must continue to improve it,” said Senator Gardner. “As the country slowly ramps back up, it’s clear that we must extend the time businesses have to rehire and spend their PPP dollars. I’m proud to work with Senator Manchin to provide additional support to help the American workforce and economy have greater flexibility with the relief provided to make it through the COVID-19 pandemic.”

"Oregon is a small business state. Our small businesses are the backbone of our economy, and right now they are teetering on the edge of the financial cliff. The mom and pop shops of Main Street want to keep paying their employees, and they want to pay their bills," Senator Wyden said. "My phone has been ringing off the hook with small businesses who have been struggling to access relief because of delays and other issues. The least Congress can do is extend these arbitrary deadlines."

Bill text can be found here.

May 13, 2020