U.S. Senator Cindy Hyde-Smith (R-Miss.) today said she expects Mississippi businesses to take advantage of reforms to the successful Paycheck Protection Program (PPP), which was created in the CARES Act to help small businesses survive the economic downturn caused by the coronavirus pandemic.
President Trump on Friday signed the Paycheck Protection Program Flexibility Act (HR.7010), which modifies PPP loan provisions. Hyde-Smith supported the reform measure, which cleared Congress with broad bipartisan support.
“More than 42,000 small businesses in Mississippi have received PPP loans and this bill gives them more leeway to use that funding to survive economically. The Paycheck Protection Flexibility Act will help Mississippi businesses use their PPP loans more strategically as the economy begins to reopen,” Hyde-Smith said.
According to the Treasury Department, 42,359 small businesses in Mississippi have received PPP loans worth $3,132,560,496 through May 30, 2020.
HR.7010 will create more flexibility for small businesses by:
- Extending the expense forgiveness period from eight to 24 weeks
- Replacing the 75/25 payroll rule with a 60/40 rule
- Establishing five-year maturity for all new PPP loans, while permitting businesses with existing two-year PPP loans to negotiate terms
- Allowing businesses granted loan forgiveness to receive payroll tax deferment
- Extending the deadline for small businesses to rehire workers now receiving unemployment benefits
- Extending the safe harbor provisions to Dec. 31, 2020, for businesses
Release from Senator Cindy Hyde-Smith.