House Passes Bipartisan Paycheck Protection Flexibility Act

Posted: May 28, 2020 1:50 PM
House Passes Bipartisan Paycheck Protection Flexibility Act

Source: AP Photo/Carolyn Kaster

The House of Representatives passed a provision to grant flexibility to autonomy to small businesses receiving forgivable loans from the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). 

The Paycheck Protection Flexibility Act (H.R. 7010) is a bipartisan addition to the PPP loan program, and passed nearly unanimously. As could be expected, Rep. Thomas Massie (R-KY) voted against the measure:

The legislation gives small businesses utilizing PPP loans more flexibility and breathing room by ensuring complete access to payroll tax deferment, eliminating restrictions on loan periods, allowing forgiveness for expenses after the previously-designated 8-week period, extending the rehiring deadline and eliminating restrictions that limit non-payroll expenses to 25 percent of loan funds.

This bipartisan passage comes in the middle of a clash between Republicans and Democrats on proxy voting, as some Democrats blatantly use the newly implemented proxy voting system to avoid legislative duties.