WASHINGTON — U.S. Senator Chris Coons (D-Del.), member of the Small Business Committee, is encouraging more flexibility for borrowers of the Paycheck Protection Program (PPP). Today, he released the following statement:
“I’ve spoken with dozens of struggling small business owners and nonprofit leaders across Delaware. Many are glad to have received a PPP loan but feel trapped by its forgiveness rules, including the requirement to spend funds in an 8-week period, while others were unfortunately left out of the program,” said Senator Coons. “I applaud the House for proposing much-needed increased eligibility and flexibility for PPP borrowers in the HEROES Act, including the ability of PPP borrowers to spend funds over 24 weeks. Let’s get this done.”
The PPP is a COVID-19 relief program funded in the CARES Act that provides forgivable loans to eligible small businesses and nonprofits based on employee retention. The PPP currently requires borrowers to use all funding within an 8-week period following the date of disbursement in order to qualify for full forgiveness. The HEROES Act includes a range of changes, including the extension of the program to larger nonprofits.