Finkenauer Statement on Vote to Improve Paycheck Protection Program

May 28, 2020
Press Release

WASHINGTON, DC – Congresswoman Abby Finkenauer (IA-01) released the following statement following her vote on a House bill to improve the Paycheck Protection Program:

"Congress took an important step today to improve the Paycheck Protection Program that has been so vital to aiding local communities and Main Street businesses across Iowa’s First District amid the coronavirus pandemic,” Congresswoman Finkenauer said. “By helping entrepreneurs who play by the rules access loans, we’re making this program more responsive and tailored to the needs of our small businesses.

"That said, there’s still more work to do," Finkenauer said. “We’ve seen evidence already of big businesses using their power and influence to claim PPP loans, underscoring the need for continued oversight. We must continue to work with business owners as well as workers on the frontlines to make sure this program supports Main Street and protects jobs."

"Last week, I introduced legislation allowing PPP loan recipients to use the funds for the purchase of personal protective equipment for workers. I’ll be continuing to look for ways to further bolster transparency requirements for loan recipients," Finkenauer said. “I’m hopeful my legislation will be adopted as Congress continues to advance coronavirus relief measures that protect jobs for hardworking Iowans."

The House on Thursday passed a bill providing for flexibility for businesses receiving loans through the Paycheck Protection Program. Among its provisions, the bill:

  • Amends the 75/25 rule to ease the requirement that businesses spend 75 percent of loan proceeds on payroll. The new ratio is 60/40, which is more workable for small businesses.
  • Ensures any newly issued PPP loans have a minimum maturity of 5 years. Currently, PPP loans have a loan maturity of 2 years, which is not long enough for many businesses. The bill also ensures nothing prevents borrowers and lenders from negotiating a longer maturity period for existing PPP loans.
  • Allows small businesses to spread their PPP loan proceeds over a longer period than the currently allowed 8 weeks, which is especially important for small businesses that cannot open yet. This bill extends the 8-week period to 24 weeks and extends the covered period from June 30 to December 31.