H.R. Paycheck Protection Program Flexibility Act of 2020 and H.R. the Truth Act
Floor Speech
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Mr. COURTNEY. Madam Speaker, today the House of Representatives is voting on two pieces of legislation designed to improve upon the Paycheck Protection Program--the Paycheck Protection Program Flexibility Act of 2020, and the TRUTH Act.
Although I am a cosponsor of both pieces of legislation and will vote in favor of them, I remain concerned that these bills fall short of the Paycheck Protection Program fixes which were already included in the HEROES Act--legislation that the House has passed and which is pending action by the Senate.
For example--I am glad that the Paycheck Protection Program Flexibility Act of 2020 includes provisions to modify the use of PPP loans, providing businesses with 24 weeks (instead of just 8 weeks) to use the loan. This bill also makes more flexible the requirement imposed by the Small Business Administration that 75 percent of the loan be used for payroll, and instead only requires 60 percent of the loan to be used for payroll in order to receive the full amount of forgiveness.
Unfortunately, this bill fails to include many of the provisions from the HEROES Act that are urgently needed to assist in our nation's economic recovery. For example, the HEROES Act extended eligibility for PPP loans to nonprofits of all sizes and would carve out funds specifically for the smallest businesses--those with 10 or fewer employees--ensuring that they are not left behind. By expanding PPP to all nonprofits, the HEROES Act would allow chambers of commerce and other nonprofit entities that are not classified as a 501(c)(3) to take advantage of this important assistance. Additionally, the HEROES Act removes the size restrictions for nonprofits, allowing nonprofits with more than 500 employees to still maintain payroll during this time of economic hardship, while their services are needed more than ever.
The HEROES Act--section 20235--also clarifies that expenses paid or incurred with proceeds from PPP loans (or EIDL grants) would not result in the denial of any federal tax deduction. Small businesses need as much support as possible at this time, and tax provisions such as this in the HEROES Act would provide a much-needed boost to our economy. Unfortunately, the two PPP bills we are voting on in the House today fail to include the full gamut of improvements from the HEROES Act, including this additional tax assistance for small businesses.
I will be voting in support of these bills but believe that it is essential that we not stop here--Congress must improve the PPP and small business assistance beyond what these bills would provide. The HEROES Act provides a strong model for what these changes should entail, and I urge my colleagues to continue improving these programs, even after these PPP bills pass the House.
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