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    Bills Signed Into Law

Maloney Votes to Improve and Extend Paycheck Protection Program for Hudson Valley Small Businesses

May 28, 2020
Press Release

Maloney Votes to Improve and Extend Paycheck Protection Program for Hudson Valley Small Businesses

Washington, D.C. – Today, Rep. Sean Patrick Maloney (NY-18) helped pass the Paycheck Protection Program Flexibility Act, a bipartisan bill that will improve and extend the Small Business Administration’s Paycheck Protection Program (PPP). This vital loan program has provided billions of dollars in forgivable loans to small businesses in New York. The reforms will extend the coverage of the program, ease restrictions on how small business owners can use the loan funds during the pandemic, and expand loan forgiveness eligibility.

“The loan programs created in the CARES Act have saved jobs and helped our small businesses in the Hudson Valley hang on through this crisis. But these programs aren’t perfect and need commonsense fixes now,” said Rep. Sean Patrick Maloney. “Today, we’re making the Paycheck Protection Program smarter and stronger, and helping small business owners across the country weather this storm as we begin the process of reopening our economy.”

The Paycheck Protection Program (PPP) provides critical support to millions of small businesses, allowing small business owners to keep their workers on the payroll during the COVID-19 public health crisis. As the economic impact of the pandemic continues, small business owners need more flexible loan terms and an expanded covered period of the program. This bill will:

  • Allow loan forgiveness for expenses beyond the 8-week covered period to 24 weeks, helping small business owners who are unable to reopen their doors keep their workforce on the payroll.
  • Increase the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent, allowing small business owners to use the funds for fixed costs like mortgages, rent, and utilities.
  • Extend loan terms from two years to five years.
  • Extend the PPP program from June 30 to December 31, 2020.
  • Ensure full access to payroll tax deferment for businesses that utilize PPP loans.

The Paycheck Protection Program (PPP) was created and funded through Congress’s bipartisan Coronavirus Aid, Relief and Economic Security (CARES) Act, which Rep. Maloney helped pass. As of today, over 4.4 million PPP loans have been distributed to small businesses across America, with 286,743 PPP loans totaling over $37 billion distributed to New York small businesses.

Small business owners in New York’s 18th Congressional District who have questions about SBA lending and grant programs are encouraged to call Rep. Maloney’s Newburgh office: 845-561-1259. His office has a team of talented caseworkers who can work with small business owners and lenders to cut through red tape at the Small Business Administration.