NAW Applauds House for Passing Paycheck Protection Payment Flexibility Act
For more information contact: Jade West (email@example.com)
Washington, DC (May 28, 2020) … The National Association of Wholesaler-Distributors (NAW) applauds the House of Representatives for passing the Paycheck Protection Payment Flexibility Act (PPP Flex) by a nearly unanimous vote of 417 to 1. We are particularly heartened that the Members of the House of Representatives were able to put aside the partisanship that has plagued the chamber in recent months to act in a responsible way to help American businesses. It is now time for the Senate to quickly take up this legislation and similarly support businesses across this great nation.
One of the most significant issues the PPP Flex program corrects is the requirement that for loans to be forgiven they must be expended in 8 weeks. When the CARES act was passed, no one expected the economic impact of the COVID-19 pandemic to continue as long as it has. By extending the loan payback timeline, Congress will allow many thousands of small businesses which are still shut down or opened at significantly reduced levels of operation to continue operations without being saddled by debt.
NAW is also encouraged by this bill’s modification of the requirement that 75 percent of a PPP loan must be spent on payroll. While we recognize the intent of this requirement was to help keep American workers employed, it was misguided because companies have different business models with widely varying payroll and overhead costs. And obviously, a business must remain operational in order to keep its workers employed or re-hired.
“The changes proposed in the Paycheck Protection Program Flexibility Act will significantly improve the current PPP and will help keep Americans working through the long recovery ahead,” said Jade West, NAW Chief Government Relations Officer.