House to vote on fixes for stand-alone small business loan program
The changes to requirement 75-25, which were not spelled out in the law creating the program, would benefit businesses with high capital costs relative to labor costs, such as bars and restaurants. stores that pay more rent than wages. Groups like the Independent Restaurant Coalition, which represents around 500,000 small local restaurants, have called for the requirement to be lifted, although they say they also need a separate bailout to stay afloat.
Phillips introduced his stand-alone bill, which includes some provisions also included in the broader leadership-backed relief measure, with Texas Republican Chip Roy. Phillips is the only Democrat on the bill, who has four other GOP co-sponsors: Tom Emmer of Minnesota, Fred Upton of Michigan, Brian Fitzpatrick of Pennsylvania and Andy Harris of Maryland.
Their bill would extend the period businesses need to use their loan funds to qualify for a rebate from eight weeks to 24 weeks. It would also ensure that companies that receive money under the program can defer payroll taxes as part of the massive March bailout, removing a restriction on “double levies” imposed by this law.
Pelosi did not mention Phillips when discussing the plan for a stand-alone PPP vote at his press conference on Wednesday. Instead, she noted that small business president Nydia M. Velázquez, DN.Y., gave executives her blessing for a separate vote.
The President of the Senate for Small Businesses, Marco Rubio, one of the architects of the PPP, also called for a stand-alone bill to address the issues that arose with the program. The Florida Republican told reporters on Tuesday that there was “a great deal of consensus” around extending the eight-week deadline for the use of loans.