KTVA: Alaska's senators support federal measure to help struggling businesses
On Friday, President Donald Trump signed the Paycheck Protection Program (PPP) Flexibility Act. Some of the highlights of the legislation include reducing the required percentage of expenses dedicated to payroll from 75 percent to 60 percent when it comes to loan forgiveness. Small businesses that take advantage will have five years to repay the loan instead of two years.
Sen. Lisa Murkowski said she is proud to support the bipartisan measure.
“This bill improves our previous efforts by making fundamental changes to the PPP, such as increasing the loan forgiveness period from 8 weeks to 6 months, giving borrowers five years to repay the loan instead of two years, expanding the deadline for employers to rehire furloughed and laid-off employees and still qualify for loan forgiveness, and improving access to these vital loans," Murkowski said in a press release.
Sen. Dan Sullivan said the legislation includes "commonsense changes" to the program.
"A number of these fixes are the direct result of conversations I and many of my colleagues have had with small business owners in our own states. I thank each of them for their patience and their engagement as we work to weather this storm and come through stronger and more resilient than before,” Sullivan said.
The PPP effort was authorized in March with the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The program also allows businesses that received PPP money to defer payroll taxes this year and extends the deadline to rehire employees without a forgiveness penalty.
By: Joe Vigil