Washington, D.C. – Today, Congressman Henry Cuellar (TX-28) voted to pass a critical, bipartisan legislation to deliver further relief for Texas small businesses.  Congressman Cuellar co-sponsored and helped pass H.R. 7010, the Paycheck Protection Program Flexibility Act, which will makes necessary fixes to the Paycheck Protection Program (PPP). These changes to PPP will alleviate the financial burden facing small business owners in Texas and across the country, who are struggling the most as a result of the coronavirus.

“Countless small business owners in Texas are in desperate need of immediate assistance as COVID-19 continues to have a devastating toll on our economy,” said Congressman Cuellar. “This bipartisan legislation will make important improvements to PPP by making sure the most vulnerable small businesses have the flexibility to obtain the assistance they urgently need. As a member of the Bipartisan White House Task Force, I remain committed to working across party lines to get American small businesses and the American worker back on their feet. I want to thank Congressmen Dean Phillips for introducing this critical bill and making effective change for small businesses.”

Many small businesses in the state of Texas have reported that the current limit in the PPP program of only 25 percent of loan proceeds being used for nonpayroll expenses such as rent, prevents them for applying for PPP loans. For many small businesses, their rent or mortgage interest tend to be significantly more than 25 percent of their total monthly expenses. To address these 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.

This bipartisan bill is supported by numerous organizations, including the U.S. Chamber of Commerce, National Small Business Association, Small Business Majority, Small Business Roundtable, National Restaurant Association, Independent Restaurant Association, NFIB, International Franchise Association (IFA), U.S. Hispanic Chamber of Commerce, National Association of Women Business Owners, US Travel Association, American Hotel and Lodging Association, Associated General Contractors of America, National Independent Automobile Dealers Association, National Association of Wholesaler-Distributors, National Newspaper Association, National Association of Manufacturers, and others.

To read more about the Paycheck Protection Program Flexibility Act, click here.