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Tonko Takes Action to Help New York Workers and Small Businesses

Congressman votes to advance bipartisan bill to make key fixes to Paycheck Protection Program

AMSTERDAM, NY—Congressman Paul Tonko voted to pass a critical, bipartisan bill to deliver further relief for New York State small businesses. H.R. 7010, the Paycheck Protection Program Flexibility Act solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners in New York and across the country who are struggling the most as a result of the coronavirus.

“I have heard from countless Capital Region workers and business owners in desperate need of assistance as the coronavirus crisis continues to exact its devastating toll on our communities and our economy,” Congressman Tonko said. “The overwhelming scale of this health and economic crisis demands that we take decisive action to protect the health and safety of our communities and the economic well-being of workers and small businesses. Our bipartisan bill will help small businesses and working families across our region weather this ongoing storm while providing oversight necessary to ensure this emergency aid will help small businesses continue to employ and pay their staff during this crisis”

Many small businesses in New York State and across the country have reported that the current PPP limit of 25% of loan proceeds being used for nonpayroll expenses such as rent prevents them for applying for PPP loans. For many small businesses, including small independent restaurants, rent or mortgage interest can be significantly more than 25 percent of total monthly expenses. To address these concerns, this bill raises that percentage from 25 percent to 40 percent.

The legislation works to increase accountability and oversight to ensure the PPP meets the needs of small business owners and their employees alike. 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 ongoing crisis requires us to provide urgently-needed fixes to the Paycheck Protection Program so that the most vulnerable small businesses, especially minority-, women- and veteran-owned businesses, have the flexibility to obtain the assistance they urgently need,” Tonko added. “My House Democratic colleagues and I are committed to doing what is necessary to get America’s small businesses and workers through this crisis and back on their feet. The American people deserve no less.”

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