Greg Pence Cosponsors Bill to Reopen Paycheck Protection Program

“Congress must put politics aside and stand up for our nation’s small business owners and workers."

(Washington, DC) – U.S. Congressman Greg Pence (IN-06) today cosponsored a bill, introduced by Small Business Committee Ranking Member Chabot (R-OH), that would reopen the Small Business Administration (SBA) Paycheck Protection Program (PPP) to America’s 30 million small businesses.

“Congress must put politics aside and stand up for our nation’s small business owners and workers. The Paycheck Protection Program has helped countless small businesses stay afloat as we cope with the COVID-19 pandemic. The legislation I cosponsored would ensure our nation’s vulnerable small businesses get the support they need to stay strong during this unprecedented challenge our country faces,” said Congressman Pence.

Background:

Creates Opportunity for Second PPP Loan

• Small businesses, nonprofits, independent contractors, and sole proprietors may qualify for a second Paycheck Protection Program loan if they meet the following criteria:
  • Employs not more than 300 employees or meets the eligible SBA size standard; and
  • Had at least a 25 percent reduction in gross revenues.
     
• The maximum loan amount is reduced to $2 million and a business can’t exceed $10 million in combined PPP loan funds.

Allots Money for Mom and Pop Shops

• $25 billion is allotted for small businesses with 10 or fewer employees.

Extends Program Duration

• The bill extends the Paycheck Protection Program until December 31, 2020, or until appropriated funds are exhausted.

Expands List of Covered Expenses

• The bill adds more eligible covered expenses:

• Covered operations expenditures, including software and cloud computing.
• Costs related to property damage as a result of vandalism and looting that are not covered by insurance.
• Covered supplier costs.
• Materials needed to protect worker safety, like personal protective equipment.

Simplifies Forgiveness Process

• The bill clarifies the forgiveness process for loans under $150,000 and loans between $150,000 and $2 million.

The full text of the bill is here.