The invoice extends the size of time companies have to make use of the loans from eight weeks to 24 weeks and pushes again a June 30 deadline to rehire staff.
It additionally reduces the quantity of funding that have to be used on payroll from 75 % to 60 %.
U.S. Rep. Xochitl Toress Small voted for the invoice and mentioned small companies in New Mexico haven’t had sufficient time to make use of the cash as a result of lots of firms have been closed in the course of the pandemic.
“That’s why I fought for getting this laws that extends that interval so that they have extra time to spend the cash after they’ll have the ability to use it and be open and begin rebuilding our economic system,” she mentioned.
“Our local businesses are relying on us to help them weather the economic impacts of this public health emergency, but there were issues in the Paycheck Protection Program that blocked them from getting the help they need,” mentioned U.S. Rep. Deb Haaland.
“So, we’re fixing those problems so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses have the flexibility to get the resources they urgently need,” she added.
Congressman Ben Ray Lujan additionally supported the invoice, which handed the Home 417-1.
If authorized, the PPP Flexibility Act would give enterprise homeowners till the top of the 12 months to make use of cash from the loan which might be forgiven if sure necessities are met.
Torres Small additionally voted for the TRUTH Act, which might have required the Small Enterprise Administration to launch the names of the businesses that acquired greater than $2 million in PPP loans.
“Unfortunately, in failing to pass the TRUTH Act, Congress has let down small business owners across the country and dealt another blow to their confidence in relief programs. Transparency is essential to accountability, and I urge my colleagues reconsider taking up this legislation.”
The PPP Flexibility Act will now head to the Senate, which is again in session subsequent week.