New Braunfels Herald-Zeitung: Chip Roy teams up with Minnesota Democrat to pass PPP flexibility bill
New Braunfels’ freshman representative in the U.S. Congress recently teamed up with a freshman Democrat from Minnesota in a bipartisan effort to create and pass a bill designed to ease restrictions on a federal small business loan program.
Rep. Chip Roy (R-Austin) and Rep. Dean Phillips (D-Minnesota) spearheaded the “Paycheck Protection Flexibility Act,” which passed the House overwhelmingly last month, by a margin of 417-1.
The Senate unanimously passed the bill on June 3, and President Donald Trump signed the bill into law June 5.
This bill was designed to solve problems with the Paycheck Protection Program, a critical source of aid for small businesses during the coronavirus epidemic that had come under fire from critics in both parties.
Roy said he had heard from small business owners for several months who have, for one reason or another, been unable to take loans provided under the Paycheck Protection Program.
“The issue that they had been facing is that they wanted to take advantage of the loans the PPP offered — $650 billion had gone out to small businesses to help them stay afloat,” Roy said. “The purpose was to get through all of this in a way that they could keep people employed. The problem was, because the initial bill had the unemployment insurance provision in there, they were paying people more in unemployment than if they took their job back.”
According to Roy, the act will create more flexibility for small businesses by extending the forgiveness period from eight to 24 weeks and replacing the 75/25 rule with a 60/40 rule.