[WASHINGTON] – Today, the National Lumber and Building Material Dealers Association (NLBMDA) issued the following statement after the House of Representatives passed NLBMDA-backed
to provide employers additional flexibility in the Paycheck Protection Program (PPP).
“NLBMDA applauds the House of Representatives for hearing the concerns of our dealer members and passing bipartisan legislation to improve the Paycheck Protection Program for small businesses,” said Jonathan Paine, NLBMDA President & CEO. “Providing greater flexibility for PPP will ensure more small businesses are able to effectively utilize the program to help weather the economic downturn caused by the pandemic. NLBMDA calls on the Senate to swiftly pass this legislation and work with the House on a broader Phase 4 relief package that fully addresses the needs of small businesses.”
Summary of the Paycheck Protection Program Flexibility Act:
- Changes the program sunset date from June 30, 2020 to December 31, 2020.
- Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks.
- Increases the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent.
- Lengthens the loan maturity date from 2 to 5 years. Existing loans remain at 2-years maturity.
- Ensures full access to payroll tax deferment for businesses that take PPP loans.
- Extends the loan forgiveness rehire date to December 31, 2020 to ensure small businesses won’t be penalized by high unemployment benefits.
- Creates a safe harbor for businesses that make a good-faith effort to hire or re-hire qualified employees.
- Allows borrowers who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
NLBMDA has been active in lobbying Congress for several weeks to implement changes to the Paycheck Protection Program.
NLBMDA was one of 55 outside organizations
to support the Paycheck Protection Program Flexibility Act after it was introduced.