Congresswoman Sylvia Garcia Takes Action to Help Texas Workers and Small Businesses, Votes to Pass Key Fixes to Paycheck Protection Program (PPP)

WASHINGTON, DC – Today, Congresswoman Sylvia Garcia (TX-29) voted to pass a critical, bipartisan bill to deliver further relief for small businesses. H.R. 7010, the Paycheck Protection Program Flexibility Act solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners in the Texas 29th Congressional District and across the country who are struggling the most as a result of the coronavirus.

"I have been hearing from many small business owners in my district that they desperately need more help as the coronavirus crisis continues to negatively impact our local and state economy," said Congresswoman Garcia. "The ongoing crisis requires us to provide urgently-needed fixes to the PPP program and ensure we help the most vulnerable small businesses, including minority-, women-, and veteran-owned businesses that really need the help."

"Many small businesses in the state of Texas, as well as across the country, have reported that the current limit in the PPP program of only 25 percent of loan proceeds being used for nonpayroll expenses is too restrictive," added Congresswoman Garcia. "For many small businesses, including, for example, small independent restaurants, their rent or mortgage interest tends to be significantly more than 25 percent of their total monthly expenses. Therefore, to address their concerns, this bill raises that percentage from 25 percent to 40 percent."

The bipartisan PPP Flexibility Act will increase flexibility and access to PPP loans including by:

• Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
• Increasing the current limitation on nonpayroll expenses (such as rent, utility payments, and mortgage interest) for loan forgiveness from 25 to 40 percent;
• Extending the program from June 30 to December 31;
• Extending loan terms from two to five years; and
• Ensuring full access to payroll tax deferment for businesses that take PPP loans.

###
Congresswoman Sylvia R. Garcia was elected to the U.S. House of Representatives in November 2018, becoming the first Latina ever to represent the Texas 29th Congressional District. She serves on the House Judiciary and Financial Services Committees.