Statement on Senate Passage of the Paycheck Protection Program Flexibility Act
WASHINGTON, D.C. – Today the U.S. Senate passed the Paycheck Protection Program (PPP) Flexibility Act by unanimous consent. The bill will now go to the president for his signature.
The Act includes several improvements the Association has been pursuing that will improve the PPP for use by restaurants, including:
- Extending the expense forgiveness period from eight weeks to 24 weeks
- Reducing the payroll ratio requirement to 60 percent
- Increasing the loan repayment period from two to five years on new loans
- Allowing payroll tax deferment for PPP recipients
- Extending the June 30 rehiring deadline
National Restaurant Association Executive Vice President of Public Affairs Sean Kennedy released the following statement on the passage of the bill:
“Today’s action in the Senate is a win for restaurants and small businesses across the country.
“Exactly 68 days ago, the Paycheck Protection Program was created. It has helped countless businesses, but the restaurant industry has a unique business model and a particularly uncertain path to recovery–and these PPP improvements will help restaurants effectively utilize this vital tool.
“The National Restaurant Association was one of the first to call for improvements to PPP to preserve our imperiled industry. In an era where political discord is the norm and agreement is fleeting, the voice of the restaurant industry has been a unifying theme. This bill passed because Congress heard from us loudly and clearly.
“We appreciate the work of Majority Leader Mitch McConnell, Democratic Leader Chuck Schumer and so many others who secured support for making these vital changes.
“The PPP has been improved for many, but our industry faces ongoing challenges and must stay engaged in Washington. We look forward to continuing to work with Congress and the Administration to create the support the nation’s second largest private-sector employer will need to recover.”