WASHINGTON—The House has voted in favor of a bipartisan bill that would loosen requirements on hundreds of billions of dollars in small-business loans made through the Paycheck Protection Program.
The vote comes as many small businesses and lenders have complained that some of the rules governing the PPP loans—which are to be forgiven if certain criteria are met—have not been feasible in their situations.
In response to the Paycheck Protection Program (PPP) Flexibility Act of 2020 (H.R. 7010), CUNA said it has been calling for further improvements to the PPP process, including lender liabilities and other challenges the Small Business Administration must address.
CUNA noted that during the debate, Rep Fred Upton (R-MI) cited credit unions when detailing why certain PPP changes were needed to get the funds to businesses.
The newly passed House bill reduces the level of Paycheck Protection Program funds that must be used for payroll to 60% from 75%, and also gives borrowers up to 24 weeks to use the funds, up from the eight set in the initial bill passed in March. The change extends the deadline to rehire workers to Dec. 31.
The bill passed 417-1, with many of the Democratic votes read into the record by their assigned proxy, the result of a recent rule change approved by the House that allows remote voting for the first time.
Senate Prospects
The Senate has been working on a similar plan to amend the PPP, but it isn’t known if senators will vote on the House bill when they return to Washington next week, or if the two chambers will hash out a compromise bill, according to analysts.
“We believe what we’ve compromised on here, in this chamber, will be sufficient to pass the Senate,” said Rep. Dean Phillips (D-MN.), a lead sponsor of the bill. “This is what small businesses need, and if we don’t keep the businesses open, the jobs go away.”