Amata provides specifics on PPP changes to help small businesses
Washington, D.C. — Congresswoman Aumua Amata is providing a summary of the changes to the Paycheck Protection Program (PPP) since President Trump signed the bipartisan Paycheck Protection Program Flexibility Act into law Friday.
“Congress listened to the input of small businesses,” said Aumua Amata, Vice Ranking Member of the House Committee on Small Business. “These changes are now law, and give employers more time and more options in using their assistance.”
The new law gives small businesses a longer time period to use their PPP loans. It also adds flexibility to how they use the assistance, allowing them to spend more on the expenses they most need to pay.
The new law includes the following economic relief:
• Adds to the amount that businesses can use on overhead, rent, utilities, and other such expenses with a change from 25 percent to 40 percent — an effort Amata supported in legislation that she co-led in introducing in May — with 60 percent reserved for payroll.
• Extends the time for small businesses to use their loan, a change from 8 weeks to 24 weeks through December 31, 2020;
• Expands small business loan forgiveness possibilities for those who have struggled to restart operations or rehire employees to help more businesses survive and reopen;
• Provides new time for loan repayment, a major change from two years to five years;
• Allows some deferment of payroll taxes for businesses with PPP loans to increase their margin.