Congressman Kildee Applauds Passage of Bipartisan Legislation to Provide Further Relief to Michigan Workers and Small Businesses

Congressman Dan Kildee (MI-05), Chief Deputy Whip of the House Democratic Caucus, today applauded the passage of the bipartisan Paycheck Protection Program Flexibility Act in the U.S. Senate, following passage in the U.S. House of Representatives. The bill provides further relief to Michigan small businesses and workers by improving the Paycheck Protection Program (PPP) through increased flexibility to use the loans. The House passed the bill on May 28 by a vote of 417-1.

The PPP, created in the CARES Act and supported by Congressman Kildee, provides small businesses and workers with federally-guaranteed support, including loans that can be forgiven for businesses that keep their workers on the payroll. The PPP was intended to provide immediate relief for small businesses to cover payroll and other fixed expenses during the coronavirus pandemic. The program’s implementation, however, has been more restrictive than originally intended, leading to a concern that many businesses that have received these loans will not have them forgiven.

The bipartisan PPP Flexibility Act will increase flexibility and access to PPP loans 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) 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.

“The coronavirus pandemic has put an immense amount of strain on our small businesses. I’ve heard from many mid-Michigan small businesses that improvements to the Paycheck Protection Program were needed to provide greater flexibility, especially as we begin to safely reopen our economy. I am pleased to see this bill, with strong bipartisan support, swiftly pass Congress,” said Congressman Dan Kildee. “We must make sure emergency small business loans are reaching those truly small businesses and mom and pop stores on Main Street that are the most in need.”

Congressman Kildee has worked tirelessly to prioritize direct support for Michigan workers, seniors and small businesses throughout the coronavirus pandemic. Congressman Kildee introduced the Recharge and Empower Local Innovation and Entrepreneurs Fund for Main Street Act (RELIEF for Main Street Act) to create a new $50.5 billion Small Business Local Relief Program to provide direct federal support to cities, counties and states in order to seed and scale local relief funds and target small businesses with 20 employees or fewer, or with 50 employees or fewer located in low-income neighborhoods. Previously, Kildee also helped pass the HEROES Act in the House, which supports small businesses by strengthening the Payroll Protection Program to ensure that it reaches underserved communities, nonprofits of all sizes and types and responds flexibly to small business needs.