SMACNA Urges House to Pass The Paycheck Protection Program Flexibility Act, H.R. 6886
In a May 22nd letter, SMACNA urged House Members to co-sponsor and pass The Paycheck Protection Program (PPP) Flexibility Act, H.R. 6886. As the nation works to address the current public health and economic crisis posed by COVID-19, SMACNA is grateful Congress included funds through expanded Small Business Administration (SBA) loans to small businesses. However, SMACNA is deeply concerned that the definitions and rules from federal agencies subsequent to this critical legislation do not expressly include related flexible terms for PPP borrowers and lenders. This oversight would be corrected if Congress passes H.R. 6886. This bipartisan bill, sponsored by Rep. Dean Phillips (D-MN) and Chis Roy (R-TX), reflects most of the reforms SMACNA members with PPP loans have endorsed since April 3rd, including:
- Repealing the 75-25 rule/ratio on forgivable expenses;
- Allowing for loan forgiveness for expenses outside of the eight-week window;
- Extending the June 30th “covered period.”
In addition, H.R. 6886 would extend the hiring deadline to offset pandemic-related enhanced unemployment insurance benefits and extend PPP loan terms beyond two years. Importantly, the bill would also ensure full access to payroll tax deferment for PPP loan recipients. These increases in flexibility throughout the PPP loan program respond to a long list of widespread small business hardship complaints. Although the $3 trillion package that passed the House last week also included the base PPP reforms (including the 24-week window) that SMACNA has been advocating for, the House-passed bill will not be taken up in the Senate as passed. That necessitates passage of this very important, stand-alone version.